Nintendo Chose To Sacrifice Average Salary Instead Of Laying Anyone Off In 2024

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This Is Something Other Gaming Studios Should Learn!

Story Highlight
  • Nintendo seemingly sacrificed its average salary last year, landing second in the Japanese regional rankings.
  • However, it was the only major gaming conglomerate in 2024 that saw no layoffs.
  • The other gaming studios under the Microsoft and PlayStation umbrella were bombarded with layoffs last year.

While the rest of the major gaming studios under Sony and Microsoft were being shelled by layoffs and shutdowns, Nintendo was the only haven for developers. The conglomerate did not face any firing sprees last year.

However, it was not able to maintain this barrier without notable sacrifices. A new report has revealed that the average salary across Nintendo was reduced last year in Japan, but it is still in the second spot compared to other firms. 

Why it matters: Nintendo’s reducing the average salary instead of laying off its core and rookie employees starkly contrasts with other studios that offer similar or lower salaries without protection from layoffs. 

Nintendo Switch 2
Nintendo officially revealed the Switch 2 last week, confirming it’s just an iterative upgrade.

Analysis by Japanese business journal Diamond Online reveals that Nintendo boasted the second-highest average salary across western Japan—including companies from all sectors that belonged to the Kansai region, excluding Osaka. 

The annual salary floated at 9.627 million yen (around $61,545 at the moment), with Nintendo being the only gaming or entertainment company in the top five spots. The salary decreased by 2.3% last fiscal year.

This decrease is even with Nintendo gaining a 4.4% boost in net sales and a 4.9% growth in operating profit during the term. Speculation suggests the drop in net sales and operating costs in the 2023 fiscal year caused this decline.

While not all might agree with the strategy to reduce average pay, many argue it is a much better outcome than taking away the livelihood of many employees by firing them. 

The Switch 2 is less powerful than an RTX 3050 GPU laptop.

The average pay given by the conglomerate is still heaps higher than what its rivals are currently offering in Japan. So, this salary cut is not as big of a deal as many layoffs we’ve seen last year.

What are your thoughts regarding Nintendo reducing everyone’s average salary instead of laying some off? Let us know your opinions in the comments below, or join the discussion on the official Tech4Gamers forum.

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