Nintendo Raises Employee Salaries by 10% as Switch 2 Costs Rise

Nintendo has increased base salaries by 10% for all employees in Japan. President of Nintendo, Shuntaro Furukawa, confirmed the decision during the company's 86th Annual General Meeting in Kyoto. The meeting also covered Switch 2 pricing, Nintendo Direct distribution, generative AI (GenAI), and a crucial leadership change.

Furukawa told shareholders that Nintendo maintains "salaries at an appropriate level." He added that Nintendo is "implementing salary increases, such as raising the base salary by 10%."

The increase reflects the company's long-held position that the people behind its games and intellectual property (IP) are its most valuable asset.

Nintendo Explains Switch 2 Pricing and YouTube Approach

Shareholders also questioned the recent Switch 2 price increase. Furukawa stated that rising semiconductor costs were one of the factors behind the higher price. He also added that Nintendo is holding long-term discussions with business partners to better manage component costs.

Another shareholder suggested Nintendo replace YouTube with its own streaming platform after previous Nintendo Direct leaks involving Google employees. Furukawa indicated that the company is still studying the best way to deliver information to players.

AI Plans and Takashi Tezuka Steps Down

Furukawa also discussed Nintendo's approach to GenAI. He said the company has used AI-related systems in game development for years, including for enemy movement. He clarified that Nintendo is complying with legal regulations as they continue to evolve in different markets.

The shareholder meeting also marked the end of an era for Takashi Tezuka.

Takashi Tezuka, a veteran Nintendo developer and one of Shigeru Miyamoto's longest-serving collaborators, stepped down from his role as executive officer after 42 years at the company. A producer behind The Legend of Zelda and Super Mario Bros. series, Tezuka will continue working at Nintendo as a producer.

The meeting provided a broader update on Nintendo's priorities. Alongside investing in employees, the company outlined how it is managing hardware costs, evaluating new technologies, and preparing for the future of the Switch 2 business.

Note: Sources used have been machine-translated from Japanese.