Prepare for a gaming industry shakeup as Nintendo confirms layoffs amidst swirling rumors about a delay in the release of Switch 2 and challenges with first-party titles! This unexpected development has gamers and industry insiders buzzing with curiosity, eager to unravel the details behind Nintendo’s strategic moves. Join us as we dive deep into the latest updates and insights surrounding these developments.
Nintendo Layoffs Confirmed
According to a new Kotaku report that features an official declaration from Nintendo, Nintendo of America’s testing department is going through significant changes, with few big games in the works and the Switch 2 seemingly delayed.
Nintendo admitted in a statement that it is reorganizing its internal testing, adding that this will “involve the creation of a significant number of new full-time employee positions, as well as the ending of some contractor assignments.”
Nintendo of America confirms contractor layoffs & full-time employee promotions at testing center https://t.co/gavXc4UatS
— Shacknews (@shacknews) March 27, 2024
Nintendo stated in its statement, “For all assignments that are ending, the contractors’ agencies, with [Nintendo of America’s] support, will offer severance packages and provide assistance during their transition. For those contractor associates who will be leaving us, we are tremendously grateful for the important contributions they’ve made to our business, and we extend our heartfelt thanks for their hard work and service to Nintendo.”
The contractors who provided the report claim that the company is restructuring because of a “lull” in its testing division. The contractors claim that Nintendo has not announced any new significant first-party titles and that no one has had a chance to playtest the impending Switch replacement, which was first reported to be released by the end of 2024.
Four current and former Nintendo employees stated in a Kotaku article that the restructuring may affect over 120 contractor positions and that those who are being converted to full-time employment are being moved out of software testing, even though the official number of employees affected by layoffs is unknown.
My understanding is roughly 120 contractor positions have been eliminated at Nintendo of America, though the company is messaging this internally as a move to "better integrate" testing across offices rather than as a cost cutting measure.
— AmericanTruckSongs9 (@ethangach) March 27, 2024
Nintendo’s reorganization follows a wave of layoffs that affected the whole industry, including significant reductions from rivals Sony and Microsoft.
Following its $69 billion acquisition of Activision Blizzard and the resignation of its controversial former CEO Bobby Kotick, who reportedly received a $15 million “golden parachute” upon his departure, Microsoft let off 1,900 employees in January. Roughly 900 people were let go by Sony in February, including developers from both commercial and critical studios including Guerrilla, Naughty Dog, and Insomniac.
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