We’ve heard too many stories over the past few years about staff cuts, and even worse, whole studio closures. Making games can be a big gamble, and with the increased cost of development, one big miss can sink a small company. However, kicking people to the curb isn’t always the answer to financial issues, as Nintendo president Satoru Iwata believes that this practice will only reduce company morale.
"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," Iwata said in a recent investor Q&A. "I believe we should continue working toward this ideal."
Nintendo isn’t doing as well as it hoped with the Wii U, and most experts don’t see the console breaking out anytime soon. But big decisions can’t be made to fix short-term problems.
"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 said. "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.”
There’s a strong fanbase around Nintendo consoles, and one won’t that won’t abandon the company if the software starts appearing. Once the Wii U gets a few big first-party games, all this doom-and-gloom talk will hopefully fade away.
"I believe that laying off a group of employees will not help to strengthen Nintendo's business in the long run,” Iwata concluded.
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