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[IbizaPocholo]

Nintendo promises 10% pay hike even as it trims profit outlook

Japanese video game maker Nintendo Co Ltd said on Tuesday it plans to lift workers' base pay by 10% even though a firmer yen forced it to trim its full-year profit forecast.

www.reuters.com

Japanese video game maker Nintendo Co Ltd (7974.T) said on Tuesday it plans to lift workers' base pay by 10% even though a firmer yen forced it to trim its full-year profit forecast.

The hefty pay hike comes amid calls by Prime Minister Fumio Kishida for Japanese companies to pay workers more as inflation takes hold in an economy used to years of deflation and stagnant wages, and as Japan prepares for its annual spring round of labour negotiations.

Fast Retailing Co Ltd (9983.T), the parent of the Uniqlo clothing chain, was one of the first companies off the blocks, jolting Japan Inc when it said last month it would hike wages by as much as 40%.

"It's important for our long-term growth to secure our workforce," Nintendo President Shuntaro Furukawa told an earnings briefing.

For companies that can afford to do so, higher salaries may also help them attract talent as a falling birth rate and low immigration leave Japan with serious labour shortages.

 

[Cert.in.Death]

Ah, brings back memories of Iwata-san cutting his salary when 3DS bombed.

That’s corporate management we all should endorse.

 

[jigglet]

Ah, brings back memories of Iwata-san cutting his salary when 3DS bombed.

That’s corporate management we all should endorse.

as much shit as i gave that guy during the wii u era, i loved that guy

 

[diffusionx]

Japan is experiencing something it has not in a very long time, that being inflation. So yes, companies are having to hike pay. They are doing it here too, the big layoffs at all these tech firms get all the headlines but everywhere else it's a good time to switch jobs or ask for a raise.

 

[feynoob]

That explains that $70 price tag.
Corporate maneuver in order to regain those 10% pay hike.

 

[Gambit2483]

That explains that $70 price tag.
Corporate maneuver in order to regain those 10% pay hike.

But why hike in the first place?

My guess is the need to retain talent on the cusp of a console transition, especially a transition from a successful console.

 

[feynoob]

But why hike in the first place?

My guess is the need to retain talent on the cusp of a console transition, especially a transition from a successful console.

Nope, that other console has nothing to do the price hike.
Japan's currency was getting weaker. This is response to that, especially now that MS increased their price.
So Nintendo won't be any trouble with Sony and MS raising their price to $70.

 

[Robb]

That’s nice.

 

[Tams]

But why hike in the first place?

My guess is the need to retain talent on the cusp of a console transition, especially a transition from a successful console.

Nah.

1. Just being decent. Companies can do that.
2. The Japanese PM has requested (wery, wery powitely) that companies increase wages after an incredibly long time of wage stagnation. If you've not been aware of it, then you'll be shocked how static (and poor) Japanese wages have been.
- and to be a bit of a weaboo; there is some deference to authority and a want to not lose face going on here with these Japanese companies