hot  /  reviews  /  videos  /  cblogs  /  qposts

Nintendo is not in the habit of laying off staff

2:00 PM on 07.06.2013 // Tony Ponce

Job security = Happy employees

The videogames industry is cutthroat. We no longer bat an eyelash whenever a publisher shuts down an underperforming studio or lays off a huge chunk of a game's development staff before the game ever touches a store shelf. It's just the nature of business, we think.

The biggest exception to this trend is Nintendo, which to the best of my knowledge has not had any significant, non-voluntary staff reduction in the past three decades. On the contrary, the Kyoto company has been expanding in recent years. What is President Satoru Iwata thinking? Doesn't he know that a good CEO is supposed to fire a bunch of people when your business isn't performing as well as it once was?

Nintendo recently held its 73rd Annual General Meeting of Shareholders, during which Iwata fielded many questions regarding Nintendo's currently less-than-stellar market situation. On the topic of corporate restructuring (read: downsizing), Iwata answered, "[I]t is true that our business has its ups and downs every few years, and of course, our ideal situation is to make a profit even in the low periods, return these profits to investors and maintain a high share price. I believe we should continue working toward this ideal. If we reduce the number of employees for better short-term financial results, however, employee morale will decrease, and I sincerely doubt employees who fear that they may be laid off will be able to develop software titles that could impress people around the world.

"I believe we can become profitable with the current business structure in consideration of exchange rate trends and popularization of our platforms in the future. We should of course cut unnecessary costs and pursue efficient business operations. I also know that some employers publicize their restructuring plan to improve their financial performance by letting a number of their employees go, but at Nintendo, employees make valuable contributions in their respective fields, so I believe that laying off a group of employees will not help to strengthen Nintendo's business in the long run. Our current policy is to achieve favorable results by continuously cutting unnecessary expenses and increasing business efficiency."

I doubt anyone completely agrees with everything that what Iwata and other high-level Nintendo execs usually say -- I did just write a big ol' rant about region-locking the other day -- but this is a policy I can stand behind wholeheartedly. Job security is such a rarity in this business, so it's good to know that at least one company has enough faith in its employees to not complete screw them over for the sake of a few extra bucks at the end of the fiscal quarter.

Whereas other companies make decisions in the interest of short-term gains, Nintendo likes to play the long game. While this may paint it as "backwards" or "behind-the-times" now and then, at the end of the day, Nintendo will still be around. For all the lessons that people insist it ought to learn from other companies, there are just as many that they ought to learn from Nintendo.

The 73rd Annual General Meeting of Shareholders Q&A [Nintendo via Siliconera]

Tony Ponce, Contributor
 Follow Blog + disclosure megaStryke Tips
(Decommissioned) Super Fighting Robot more   |   staff directory

 Setup email comments

Unsavory comments? Please report harassment, spam, and hate speech to our moderators, and flag the user (we will ban users dishing bad karma). Can't see comments? Apps like Avast or browser extensions can cause it. You can fix it by adding * to your whitelists.

Status updates from C-bloggers

GoofierBrute avatarGoofierBrute
Spooky yet totally true gaming fact: the bushes and the clouds in Super Mario Bros are the same exact shape. #Spooky
Sr Churros avatarSr Churros
It is coming fast AAAAAAH
Fuzunga avatarFuzunga
The newest PS4 update finally got rid of that bug where I'd get the "you can customize your power options" message every time I turned on my console!
El Dango avatarEl Dango
Should I just pass on MGSV? I haven't really liked any of the games after Snake Eater, and it's being used as a money sink at the moment.
Mike Martin avatarMike Martin
[Youtube][/youtube] All the episodes are on youtube now. Also I never knew they got to do a season 3. Pretty cool. Now back to Transformers. Scored a gc to my favorite thai place too. Pad ahoy bitches. It's been too long.
ashamasha avatarashamasha
i have almost all the pieces i need to build my own Arcade machine... and the last one arrive this Saturday! Soon, one my childhood dream will became true!
RadicalYoseph avatarRadicalYoseph
Interviewer: Konami, why are you selling cosmetic DLC for MGSV? Konami exec: I breathe through my skin.
RadicalYoseph avatarRadicalYoseph
What is the Dtoid chat room?
TysonOfTime avatarTysonOfTime
Batthink avatarBatthink
This GrumpOut video was pretty funny to me (props to TheBadSpoon on the Dtoid chat room);
CoilWhine avatarCoilWhine
Sonic Lost World is coming to PC on November 2nd for $25! I may double dip, hopefully they'll make the final boss less rage-inducing. Ah well, I can always grind for extra lives lol.
Mike Martin avatarMike Martin
Older. Grayer. Wiser. Dick still works. #Ballin
FlanxLycanth avatarFlanxLycanth
Wow I just want a mic for the PS4...why are they so expensive ;_;
ikiryou avatarikiryou
Went to play MGSV, got prompted to download the MGO data; it's not on the PS Store yet. Or maybe it's Kojima-san's way of telling me it's not the real MGO data, but is instead a janitor who once protected me from a puddle of pee and now wears my face.
CJ Andriessen avatarCJ Andriessen
Going grey >>>>>>>>>>> Going bald
Rudorlf avatarRudorlf
Recently watched the Cannon Films documentary, by the director of Not Quite Hollywood. Super entertaining, hilarious, and it almost made me want to watch some of the Cannon films. Almost.
CaimDark Reloaded avatarCaimDark Reloaded
PEOPLE! PEOPLE! PEOPLE! Tomorrow I'm meeting Shade of Light in RL!
able to think avatarable to think
Tip for those who have plasma TVs and are playing MGSV; go into settings and make the weapon icon only appears when you're aiming. I had to buy a new TV because the weapon icon got permanently burned into my plasma.
FlanxLycanth avatarFlanxLycanth
Any of you cute little butts gonna be at London Comic Con?
Jiraya avatarJiraya
You felt your sins crawling on your back... [youtube][/youtube]
more quickposts



Invert site colors

  Dark Theme
  Light Theme

Destructoid means family.
Living the dream, since 2006

Pssst. konami code + enter

modernmethod logo

Back to Top

We follow moms on   Facebook  and   Twitter
  Light Theme      Dark Theme
Pssst. Konami Code + Enter!
You may remix stuff our site under creative commons w/@
- Destructoid means family. Living the dream, since 2006 -