Nintendo Increases Staff Wages by 10 Percent and Rejects Generative AI While Highlighting Software Profitability and Recent Starfox Success
Though the video game industry as a whole is still experiencing mass layoffs and studio closures, Nintendo has avoided the financial hardship. At a recent investor assembly, Nintendo president Shuntaro Furukawa announced that the corporation will give all employees in its Japanese offices a 10 percent pay rise. Financial analysts noted that this is likely due to a direct appeal to Japanese Prime Minister Fumio Kishida, who has called on domestic firms to increase wages to help workers offset inflation.
Furukawa also addressed the current state of hardware manufacturing. He confirmed that Nintendo is actively negotiating with global component suppliers to secure a steady production volume for its gaming hardware and accessory lines. Additionally, the president clarified the company policy regarding artificial intelligence. Furukawa stated that Nintendo does not employ generative artificial intelligence during the game creation process. Instead, developers utilize specialized AI like tools solely for automating the movement and physics of virtual enemies.
Legendary game designer Shigeru Miyamoto also addressed shareholders at the gathering to shed light on how the business generates revenue. Miyamoto revealed that, while "hardware sales make up about 30% of their profit," the bulk of their income actually comes from software sales. He used the Pikmin franchise as a perfect example of "software delivering sustained long term returns" for the company.
The robust Nintendo software portfolio was further demonstrated right up until the day of the shareholder meeting with the release of Starfox, a modern reimagining of the franchise series made popular on the SNES and Nintendo 64. The spacefaring action adventure title received high praise from critics worldwide. This remastered version achieved a 82 raw average on Metacritic and a score of 83 on OpenCritic, indicative of a healthy software cycle for Nintendo leading into the new fiscal year.
