Layoffs in Gaming (Current State of the Gaming Industry)

[Pemalite]

JSG87 said:

The only company that really manages their staff properly seems to be Nintendo. They are no longer conservative as they were with regards to employee numbers, especially with the jump to HD but they've went about it the correct way. They're employing within their means, keeping budgets for games at a reasonable level and paying staff enough to keep retention high.

A good few companies would do well to have a good hard look at how Nintendo does it's business because as far as I'm concerned out of every business in the gaming industry at the moment, Nintendo will be the last man standing.

Hiring extra people because you can isn't exactly a great way to do business and messes with people livelihoods when the inevitable happens.

There is likely a good reason for that.

Nintendo needs to be profitable even when their core business slumps as they don't have any other markets they engage in to keep up revenue and profits to weather poor market conditions... So staying lean, stable and responsive is in their best interest.

Other companies artificially inflated employee numbers due to the COVID digital boom as everyone was stuck at home across the entire planet, now we are in a market-correction phase.

And in Microsoft's case, they are removing fat from their big purchases because some job positions don't need to be duplicated.