Nintendo won’t fire staff to please shareholders 
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Geoffrey Tim
July 8, 2013 at 1:30 pm

iwatahat

We hear it all too often in the gaming industry; people getting fired and whole teams being let go because shareholders just aren’t able to put enough gold-crusted caviar on their end-of-the-month Salticrax. Nintendo’s shareholder’s aren’t the happiest at the moment, wit the Wii U’s poor sales – and they’ve asked Nintendo President why he hasn’t done any sort of corporate restructuring (read: lay-offs) despite the company incurring losses for the last two periods.

Iwata doesn’t think that’s the sort of corporate cost cutting that will have any long-term benefits – and will only lead to lower morale and a loss of valuable skills; a refreshing stance to see in an industry where people are treated as little more than trained, easily replaceable monkeys. 

“The manpower required for increasingly complex and advanced product development has totally changed from that of the past. Hence, the number of employees has increased and higher costs have been incurred,” he said.

“Regarding why we have not reduced the number of the personnel, it 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.”

Iwata believes that Nintendo can return to profitability with its current business structure – but will implement cost-cutting measures if necessary, by culling unnecessary expenses…that aren’t staff.

“I 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,” he said.

“Our current policy is to achieve favorable results by continuously cutting unnecessary expenses and increasing business efficiency.”

I'm old, grumpy and more than just a little cynical. One day, I found myself in possession of a NES, and a copy of Super Mario Bros 3. It was that game that made me realise that games were more than just toys to idly while away time - they were capable of being masterpieces. I'm here now, looking for more of those masterpieces. I am also the emperor of the backend

  • Jonah Cash

    Wow!!! How awesome is that????? In 2013 someone can see that people make the place what it is!!! WOW!!!!

    • Admiral Chief Groot Wors

      Awesome sauce indeed

  • Theo Steenekamp

    Look at my horse! My horse is Amazing!

  • Trevor Davies

    So much sense, give this man a case of Bells. We’ve gone through retrenchments twice over the last few years, it hasn’t made things better.

  • John Ambitious

    Well done

  • Sir Rants-a-Lot Llew

    That is some really uplifting news :)

    • Admiral Chief Groot Wors

      Its like staring at great boobs this news is to me

  • HvR

    “an industry where people are treated as little more than trained, easily replaceable monkeys”

    That is all industries/corporations, regardless if you are called “family” or team or whatever when it comes to the bottom line you a number listed next to a cost.

    The is the first thing you should learn as an adult F^%K first or prepared to be F^&KED.

  • FoxOneZA – X-Therminator

    Nice hat…Geoffy :P

  • TiMsTeR1033

    Nintendo go shove that hat up your asshole!

  • Harvey P. Cheesewinkle

    Interesting, apparently one of the only companies in the world who can see beyond their shareholders wallets. It’s one of the biggest issues with capitalism I’m afraid. People take it to such extremes in order to give an extra cent or two to the shareholder, while laying off thousands of likely loyal employees.

    And typically, when these things come down, it’s the longer term employee who gets the axe, as they’ve accrued a higher compensation package, by that point. Years of raises, etc… Easy way for companies to shed what they perceive as ‘excess’.

    Sorta like Democracy, it’s the best show in town…but hardly perfect.

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