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In addition to looking at the lighter and weirder side of the game industry, System Update provides the latest information on weekly console updates, DLC, game-specific updates, and other game-industry flotsam and jetsam.

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Report: Nintendo to make $1.6 million profit per employee

  • Posted Sep 16, 2008 3:30 pm PT
  • By Polybren
  • 186 comments

It's no secret that Nintendo has experienced incredible success since the launch of the Nintendo DS and the Wii. However, a report from Financial Times this week is attempting to put that success in proper perspective.

According to the article, Nintendo is on track to earn $1.6 million in profit this year--for each of its workers. Given the publisher's latest revenue projections and a workforce of less than 3,000 permanent employees, the business-focused site believes the Wii maker will top the per-employee profit numbers of heavy hitters like Google and Goldman Sachs. The Financial Times believes the search engine giant pulled in about $626,000 for each of its employees, while the global investment firm managed $1.24 million.

Nintendo keeps its profits up a few ways, most notably by outsourcing manufacturing and some game development. It also saves a bundle on employee salaries. Where Goldman Sachs' average employee made $660,000 in total compensation for 2007, the average Nintendo salary clocked in at $90,900.

"We are not experiencing success, just increased overtime," a Nintendo employee told the site. Despite that, the article specifically mentioned the quote was given "with no sign of dissatisfaction."

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  • ctburesch

    Posted Oct 8, 2008 1:12 pm PT

    I personally have a WII and all the other next gen systems. I really don't get the Wii. As a gamer who enjoys games and have since the the 1980's, I just don't think the Wii is that much fun. I think it is a system that is bogged down with shovelware. My 5 year old likes it, for about 10 minutes, then he goes back to Call of Duty 4 on his Xbox 360..real games. To the poeple still with the nerd sweats. The Xbox was fixed and has been problemless months ago. All the units made after November of last year have been redesigned with no problems.

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  • DoctorBedlam

    Posted Sep 26, 2008 1:24 pm PT

    Money, money, money, money! MONEY!

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  • ScavenedShadow

    Posted Sep 25, 2008 8:07 pm PT

    Hooooly crap...that's a ton of money.

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  • the_Hippest_Cat

    Posted Sep 23, 2008 2:31 pm PT

    Hopefully Nintendo places a nice bonus at year-end for it's devoted employees. Equally sharing a little profit never hurt morale. Maybe they can even bank on some of this cash for developing a new GAMEBOY. I hope they never let that name and franchise die off. Handheld fan or not, everyone can respect a GAMEBOY when they hear about it.

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  • prioritymail

    Posted Sep 23, 2008 1:49 pm PT

    Incredible, simply amazing... they must use they could literally wipe there @$$es with benjamins!

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  • shawn7324

    Posted Sep 20, 2008 5:20 am PT

    Wow great, the rich are getting richer, as if I didn't already know that. Myself I haven't enjoyed Nintendo since I was a kid. Just naming a couple titles releasing soon, Fallout 3 & Far Cry 2. What does the Nintendo Wii have coming that can compare to those type games on the Xbox 360 & PS3??? Exactly nothing.

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  • necronaux

    Posted Sep 19, 2008 9:29 am PT

    "Average" (?) at $90K is probably really skewed towards high level managers and execs. I bet the 'workers' aren't even a quarter of that. (and HOW do I get a job at GS at $660K)

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  • Proman84

    Posted Sep 19, 2008 8:22 am PT

    Yes, but have many of the people who contributed to Nintendo's success are either contractors or 3rd party employees?

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  • Bozanimal

    Posted Sep 18, 2008 10:28 am PT

    I am working for the wrong company.

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  • FoxExecutive

    Posted Sep 18, 2008 9:44 am PT

    First, I think this shows how much Nintendo employees love the company they work for and how hard they are willing to work for it. So I say congratulations to Nintendo and their employees.

    I don't want to step on anyone's beliefs about hardcore gamers, but here we go. I do NOT count someone who mindlessly buys all the games out there or plays several hours a day a hardcore gamer. I would put that as a casual fanatic and not so much hardcore. You may ask what is the difference between being a casual fanatic and a hardcore gamer and I would ask, "What do you come away with when you play a game?" If you answer along the lines of having fun when you play a game then you have only met one of the criteria of a hardcore gamer. A hardcore gamer is someone who takes all aspects of a game and reflects on each aspect they have played, much like a reviewer for a magazine or website. In addition it is someone who researches games and makes sound decisions on the games they decide to play, and not someone who sticks to a certain genre or even particular game. Playing Counter-Strike or WOW for 8 hours a day does not make you a hardcore gamer. But I'm not going to write an entire thesis on what a hardcore gamer is and how they differ from a casual fanatic -- because I definitely thing it could be done.

    But to those who find the Nintendo Wii as a poor system because of game selection I believe that to be an unfounded argument with a great lacking of research. Every system has its perks of games and I enjoy playing many games on all three. AND to counter that argument of poor game selection I present to you a list of games you should play that are in my opinion must haves on the system:

    Legend of Zelda: Twilight Princess - the Zelda game which all fans have been waiting for since Ocarina of Time

    Super Mario Galaxy - an ingenious game with mechanics revolutionizing the way a platformer is played and the true sequel to Mario 64

    Super Smash Bros Brawl - definitely presents a solid argument for the best fighter on any system

    Okami - a port to the Wii that uses the Wiimote superbly

    No More Heroes - a critically acclaimed game that offers a lot for the more mature audience than just blood and gore (but there is plenty of that too)

    Metroid Prime 3 - completing the astounding trilogy that offers more depth and ingenuity than almost every other 1st person shooter out there

    Resident Evil (both games) - RE4 being a great port to the Wii and for those who have not experienced either on the PS2 or Gamecube should definitely consider playing this. Umbrella Chronicles is a good rail shooter with a few issues but luckily no store sells it for the $50 for a normal Wii game, I bought my copy for $25 on sale at Target

    Super Paper Mario - a great system switching from 2D to 3D environments and a great story make this a game worth playing

    I'm just naming the most superb games worth playing and there are plenty other games to try on the Wii. To note I don't just play the Wii but also the 360, PS3, and PC and I believe that one valid argument is that Nintendo looks pretty scarce on the in-house development with many of their AAA titles but there is still plenty of games there to enjoy.

    On a side note, PS3, 360, and PC definitely look promising within the next year of great games coming out for the three systems.

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  • puppiemaster

    Posted Sep 18, 2008 1:11 am PT

    shadystxxx damn right.

    -------------------------------------------------------------------- Drz4tobate buy a 360 Elite, I've never had a problem with mine and you get a 3 year warrenty

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  • Drz4tobate

    Posted Sep 17, 2008 10:41 pm PT

    Good comments i see!! well i had plans of buying all 3 systems but xbox is just a big problem to have because of the over heating and the famous Ring Of Death .. Nintendo is doing great but i really think that is not competing with the other two systems because is so unique and the graphics are soo apart from the two!! overall is a fun system to have at home.. PS3 well Im a playstation fan all the way!! reason because when they make a system is almost perfect all the time..they have most of the good games and blue-ray... so i'll really would go wit the PS3 and the Wii to have at home!! Xbox!! well when i start heirin good things about the system then i'll consider it...

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  • Magick_Mike

    Posted Sep 17, 2008 10:09 pm PT

    Reading these arguements can literally cause brain damage with a few exclusions of course.

    Do you monkeys even think before you let those fingers fly? Geez..

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  • shadystxxx

    Posted Sep 17, 2008 6:45 pm PT

    puppiemaster
    Being a so called HARDCORE GAMER is not about supporting companies or consoles, it's about supporting GAMING and the FUN you get from it.
    -------------------------------------------------------------------
    I could not have said it better myself, i own all current gen system's and own around 200+ game's for all current gen systems(including handheld's/PC $ DLC games) i have owned every system released in the U.K since 1987(born in 1982) started off with an Atari when i was five and never stopped, i have 1000's of game's in my loft along with lot's of old console's like NES/Snes/N64/N Gcube/Amiga 500/Amiga 600+/Amiga 1200/Master system/Mega drive/Game Gear/Lynx/Game Boy's/Saturn/Dreamcast/PS/PS2/Xbox/Spectrum ZX/Commodore 64 along with other's like the consoles i thought where crap like the jaguar, load's of add-on's like the sega CD/32x.

    I have thousand's of game's all boxed up thousand's of old Specturm casseste's games for that thing were like 99p-£1.99 and could be copied in a hi-fi, probably over a thousand or two amiga floppy discs'(allot of copied one's though) and boxe's full of cartridge's and CD/DVD based games.

    I constantly get bugged to throw them out from my lass as they take up 80% of the loft space but i will never get rid of them, 20 years worth of a collection.

    I have alway's said a true gamer support's good game's and the only way to play all the good games is to buy all systems, a fangirl is not a true/hardcore gamer in my opinion but thats subjective.

    Fangirls dont really bother me its them that misses out, sometimes they do when they say things like system X has no good games that they want to play which is nonsense, also the fact they over run the forums arguing opinions all day is annoying, they really do seem to have a sad life to support a piece of hardware like it was there little brother being picked on by the fat bully, you can actually see that people are being offended by insults on there prefered system, very sad.

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  • xLordOblivionx

    Posted Sep 17, 2008 5:36 pm PT

    Puppiemaster, you are a god.

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  • puppiemaster

    Posted Sep 17, 2008 5:19 pm PT

    chiggins28, I agree there are plenty of hardcore gamers out there and then there are plenty of Fanboys who think they are hardcore gamers.

    Buying a few games on 1 system is not Hardcore, its just a part time hobby.

    Try buying every major system since 1978 and have having over 4000 games in your collection, then talk hardcore.

    The Wii is a great system, it's worth the price for the VC alone, The 360 is worth buying for the online side, the PS3 is worth buying for all of the games that the other 2 dont have and its a blu-ray player.

    Stop hating any of the systems and step up to the hardcore gamer plate and fork out on all of the systems.

    If anyone, I should be more pissed at this generation , VC d/l's of games I own already, PSN and Xbox live games I already own and Samba De Amigo coming out on the Wii when I bought 2 Sega controllers and both games for it on the Dreamcast, but I'm not I love it, I've even bought loads of the download games.

    Being a so called HARDCORE GAMER is not about supporting companies or consoles, it's about supporting GAMING and the FUN you get from it.

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  • morbid_man_guy

    Posted Sep 17, 2008 4:55 pm PT

    i can see where this goes:
    employee: "Where's my ****ing money!?!?!?"
    nintendo: "We don't have your money."
    e: "Of course you have my money!! You took HUGE profits and then didn't pay me! WHERE'S MY MONEY!?!?"
    n: "We don't have your money."
    e: "I KNOW you have my money! YOU HAVE MY MONEY! Give me my money!!!"
    n: "We don't have your money."
    e: "Stop repeating that bull****!!!"
    n: "We don't ha... ...\ *ERROR* Buffer overrun. Please contact the cheap crappy company we outsourced our manufacturing to."

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  • shabulia

    Posted Sep 17, 2008 3:33 pm PT

    Seems to me that Nintendo is becoming the new Microsoft from about 10 years ago. Maybe Nintendo should pay their employees a bit of that hard earned change. Just my opinion.

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  • MatzeEdend

    Posted Sep 17, 2008 3:20 pm PT

    I wouldn't call myself a Nintendo "fan boy", but I do rather enjoy my Wii, and the fact that it is the only current gen system that did not have any costly malfunctions or major delays in the initial release of the system is enough of a success story on its own. Yeah the technology is somewhat dated compared to the other systems, but if tech was such a big issue then everyone would simply have gaming quality computers that can be upgraded with the times.

    As for the "increased overtime" quote in the article, you have to realize that that is the Japanese work ethic at its finest. There is a reason they are the industrial powerhouse they are today.

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  • Soldaten027

    Posted Sep 17, 2008 2:10 pm PT

    That better mean some fracking bonuses!

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  • Pergynt posted Sep 17, 2008 1:55 pm PT (does not meet display criteria. login to show)

    Pergynt

    Posted Sep 17, 2008 1:55 pm PT (hide)

    the only good nintedo consolo was the 64 all the other nintendo consoloes are pure crap

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  • sieg6529

    Posted Sep 17, 2008 1:51 pm PT

    Think about this, people. The Wii is a raging success that is continually beating expectations. What incentive does Nintendo have to restrict games of lower quality published for the Wii? To make the hardcore gamer happy? To make it easier for fanboys to brag about the Wii? I agree that more new, exlusive, high-quality games are needed, but why make it harder to publish Wii games? Crappy developers will not suddenly realize the error of their ways and start producing high-quality games. Nintendo is probably using this easy-licensing period to let other developers figure out the best and worst ways to use the Wii's unique capabilities, and then implement those methods in their own high-quality games.

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  • tiggerboy

    Posted Sep 17, 2008 1:47 pm PT

    canderson85 - What the hell does that even mean dude??!!?

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  • LindBergh2007

    Posted Sep 17, 2008 1:46 pm PT

    I'm actaully surprised at short amount of Nintendo fanboys in this topic. I was actaully expecting doazens of them to come out and rant on why thier machine is such a "godly" machine instead, I've found a bunch of disgruntled Wii owners fustraighed with console's overall dated tachnology, lack of strong titles, disposable library and useless peripherals that Nintendo keeps churning out.

    This is one of the main reasons why I didn't buy a Wii and never will. It shows that I'm not the type of person who's into novelty and won't buy an underpowered console with poorly designed 3rd party games ported from PS2. Nothing the Wii has done has revolutionized gaming. All of it's acessories are recyled from other consoles from generations earlier. most of the upcoming first party titles are just rehashed Gamecube games that will be repackaged and sold to the most hardcore Nintendo fanboys who know it's the same material and don't care.

    It's pretty obvious that the 360's price cut along with it having the stronger library has dashed most Nintendo fans' arguement about why Wii is better. The Wii's price tag was it's biggest draw and that seems to have dissapeared. As of July and August, Wii hardware sales have dropped and will continue to.

    If I was a casual gamer now, I'd ask myself this question:" Should I buy a Wii that's $250 and pay even more for the perhipherals or should I buy a $200 hardriveless Xbox 360? since I don't play games much I don't need a drive."

    In regaurds to this article. Talking about Nintendo employers is irrelavant and only serves to fire up Nintendo's fanbase into a useless discussion into figures they probably know nothing about.

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  • canderson85

    Posted Sep 17, 2008 1:33 pm PT

    This is not great for gaming, anyone who says that doesn't see the party game tech demo vomit they've been feeding the hungry fishes who don't seem to have any standards

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  • tiggerboy

    Posted Sep 17, 2008 1:28 pm PT

    I have enjoyed many Nintendo titles on the Wii, but the fact that they allow almost anyone to make a game on their console is just causing their library of games to be majorly stacked with half-ass titles that just don't belong on a system that has the potential that the Wii has. /

    I am not saying that I expect all of Nintendos titles to be great games, but when 70% of your total library consist of games that are rated below 50% (not just by GS, but by everyone) I think that its time to tighten up ship and not be so lenient on titles appearing on your console. /

    Other than that, good job!

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  • Cenue

    Posted Sep 17, 2008 1:24 pm PT

    It is not people who are complaining, it the biggest Nintendo fans that are complaining! I mean, who wouldn't?! The company you love and adore suddenly starts to neglect you, catering instead to those who used to give video games the finger! We stuck with Nintendo, keeping them alive through all of the hard times, albeit great times as well. The N64, although the near demise of Nintendo, I think was undoubtedly their greatest system! Nintendo used to be a company where they actually cared about what games were published on the system. Now, anything gets on the system! They (Nintendo) no longer even have a Seal of Quality!!! Sure, their first-party games are still good, but honestly, I would appreciate games from third-party developers every once in a while. Yes, they are coming in droves, but very few are playable! I understand that Nintendo is a corporation that is out to make money, but honestly, what company kills off their own fan base?! Yes, they are building up a larger fan base than they have held for years, but are at the same time losing all of the fans who have stuck with them up until now. I have since ditched the Wii for the PS3. Truly, who wants to play games with their Grandma?! Maybe I am just growing up and Nintendo is a thing of the past. Maybe all of us Nintendo fans are complaining because we have been pushed out of the nest. It is time to move on to new and more exciting things (PS3, XBOX360). Farewell Nintendo, the days of tossing Bowser by his tail will forever remain a vivid memory of mine, a memory of a companion who has lost themselves to the ideals of Capitalism! Should they ever return, I will embrace them. Until then, I await Kratos' next adventure! Long live Nintendo!!!

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  • black_ice23

    Posted Sep 17, 2008 1:21 pm PT

    i wondering if there are hiring

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  • re4leonkennedy

    Posted Sep 17, 2008 1:08 pm PT

    Wow. Nintendo makes a $1.6 million profit per employee. That is very impressive from a business point of view. I also think they pay their employees a fair amount. I sure wouldn't complain about making 91000 a year.

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  • nintendokid

    Posted Sep 17, 2008 1:06 pm PT

    @jonrod1

    Evolution refers to the total spectrum of change. The word you are looking for revolution, which the Wii's codename was dubbed "Revolution".

    So tell me, what aspect of video gaming has the Wii revolutionized? The Wii's impact on video gaming is blown way out of proportion. It's beyond belief. All Nintendo has done is did away with the standard controller and presented us with a new way of INTERACTING with video games. If you think the Wiimote and WiiFit pad has somehow changed the way we EXPERIENCE video games, then you are not qualified to discuss this matter.

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  • jonrod1

    Posted Sep 17, 2008 12:12 pm PT

    I dont understand why people are complaining when a company is trying to evolve gaming.

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  • chiggins28

    Posted Sep 17, 2008 11:58 am PT

    dakaptinman
    "OK. All of you "hardcore fanboys," answer a few questions for me.

    You've been complaining about the lack of quality titles for the Wii. Are you saying that Nintendo's first-party titles aren't quality? Or are you complaining that OTHER companies haven't invested the time or money into their games?

    You've been complaining that you have to wait too long for Nintendo to release their games. Has waiting to release their games diminished their quality? Can you name ANY game developed and released in two or fewer years that's been any good?

    Is it really Nintendo's fault that you're dissatisfied with the effort they've put into releasing high-quality games? Is it Nintendo's fault you few hardcores don't like what a vast majority of people that aren't you have greatly enjoyed? Can Nintendo be faulted because you're a bunch of brats?"

    first of all, your post is just a bunch of condescending rhetorical questions that don't really say anything except that you are a fanboy yourself. there aren't a "few" hardcore gamers, there are ALOT, and that number increases every day. nintendo found it more profitable to cater to people who don't really care who the developer of a game was, or who don't closely watch the continual progress in our beloved hobby. big deal right?

    i'm sorry but the "hardcore" gamers have a point. they are willing to throw down big bucks banking on a payoff. if nintendo wants to produce shallow shovelware for the masses for the rest of this generation, then fine, but gamers are gamers first, not businessmen.

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  • linkyshinks

    Posted Sep 17, 2008 11:46 am PT

    The juggernaut that is Nintendo rolls on lol. I think it's great for the industry, I just think it's also very sad I do not own shares in the company

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  • linkyshinks

    Posted Sep 17, 2008 11:46 am PT

    The juggernaut that is Nintendo rolls on lol. I think it's great for the industry, I just think it's also very sad I do not own shares in the company

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  • frogiggy323

    Posted Sep 17, 2008 11:41 am PT

    I'd be asking for a couple hundred thousand dollar Christmas bonus.

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  • Pinguin14

    Posted Sep 17, 2008 11:40 am PT

    ya i get how nintendo makes so much. but it's not really for me... too family oriented.

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  • ivan_the_one

    Posted Sep 17, 2008 11:37 am PT

    I don't think I could ever get tired of making videogames if I worked for nintendo.

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  • assassinisback

    Posted Sep 17, 2008 11:37 am PT

    I'm a hardcore gamer, but I DEFINITELY agree with what workingdesigns1 said...

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  • Ghost_702

    Posted Sep 17, 2008 11:33 am PT

    Must agree that they make systems for all to enjoy, not just a specific group. They do it well.

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  • workingdesigns1

    Posted Sep 17, 2008 11:15 am PT

    alot of you are whining about the wii sucking cuz its not producing games all you so-called "hardcore" gamers out there enjoy. what you dont get though is that nintendo is a profit driven company. they are aiming their sales at the "casual-gamer" (and children) not you hardcore wannabe's, because there is a much bigger market there. and they are dead on. good for them. if you dont like it just go play your xbox or ps3.

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  • starduke

    Posted Sep 17, 2008 11:11 am PT

    Hmm...I wonder if Nintendo has any job openings...

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  • Jedilink109

    Posted Sep 17, 2008 11:09 am PT

    Dude, 90 thousand! That's pretty good...well especially considering what I'm making now. 15 thousand.

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  • neonblueshadow

    Posted Sep 17, 2008 11:06 am PT

    I think the Wii came too late into the scene, after most gamers and industry clients have turned fat and lazy over the years, and now nobody wants to get up move around b/c they're stuck in their sofas, couches, beds, plushy executive chairs. Oh, graphics don't make a hardcore gamer, its the well situated and anchors gaming set up at home. If you spend more than 3 hours a day in front of a screen while sitting on a well dented piece of furniture playing games, I'd say you're hardcore... =P But seriously though, Graphics has always been an important aspect of gaming and it always will be one of the most important. its not the end-all factor in a game, clearly, but its one of the the most important ones that must match the gameplay and the game design. Its like with anything people want, things must appeal to all our senses.

    Game have to be like food, it must look good and smell (sound for games) good to attract the new customer, and taste good and feel good to keep them coming (gameplay and game design). sure there are great tasting foods that smell bad or look horrible, but unless they have been marketed well, people will rarely try them, only the adventurous ones do.

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  • chakan2

    Posted Sep 17, 2008 10:48 am PT

    Actually, I would bet that the average salary is much lower due to the Nintendo execs not making as mcuh as Goldman Sachs top 5%. Their salaries are astronomical (probably in the realm of 10s of millions) where as the regular workers are probably on par with Nintendo's. I'm just saying check the data before you jump to conclusions like above.

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  • glennvolio

    Posted Sep 17, 2008 10:42 am PT

    Blah blah Nintendo blah blah good sales blah blah innovation blah blah "we're sorry about short supplies and a crappy E3" blah blah blah blah blah!!! I'm sick of these kind of articles. The vast majority of the games on the Wii are glorified tech demos that I could find online for free if I tried hard enough. The only redeeming quality of the system is the Virtual Console, and even that gets boring after a while. American Idol is the one of the highest rated programs on American television, and is one of the most profitable programs to ever grace the airwaves (if not THE most). Does that make it a good show?

    /the more you know

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  • wiljas

    Posted Sep 17, 2008 10:25 am PT

    First off I have to say "Good Job Nintendo!" But then I have to say give your employees a raise. I think if you want to be one of the big boys you better be willing to pay it. since it seems like financial competition is paying more than 5 times as much.

    Next I don't think the Wii is a bad console But if your expecting some of the big games that normally go multi-platform. You better skip the Wii. The 3rd party game developers don't want to build the game special for the Wii every time.

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  • ThroughTheGlass

    Posted Sep 17, 2008 10:13 am PT

    Im not saying the wii isn't a fun piece of hardware. There just needs to be more AAA titles out for it. Its a great party system but not so much a great system for a single player experience at the moment.

    With all the money nintendo is making off of the wii and ds, hopefully they will make some deals with third party developers to make some great games.

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  • dakaptinman

    Posted Sep 17, 2008 9:57 am PT

    OK. All of you "hardcore fanboys," answer a few questions for me.

    You've been complaining about the lack of quality titles for the Wii. Are you saying that Nintendo's first-party titles aren't quality? Or are you complaining that OTHER companies haven't invested the time or money into their games?

    You've been complaining that you have to wait too long for Nintendo to release their games. Has waiting to release their games diminished their quality? Can you name ANY game developed and released in two or fewer years that's been any good?

    Is it really Nintendo's fault that you're dissatisfied with the effort they've put into releasing high-quality games? Is it Nintendo's fault you few hardcores don't like what a vast majority of people that aren't you have greatly enjoyed? Can Nintendo be faulted because you're a bunch of brats?

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  • Krusnikzero2

    Posted Sep 17, 2008 9:57 am PT

    @Methuselah

    Agreed. I think it's absurd that good graphics have become synonymous with "Hardcore." It seems to me that hardcore gaming should be based difficulty and complexity of the experience. I'd love to give some FPS-jockey a copy of Metroid Prime, then they'd see what it really takes to have skill at gaming.

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  • boo_berry_69

    Posted Sep 17, 2008 9:56 am PT

    try 249

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