Nintendo Sees Growth Amid Layoffs

In an industry widely affected by layoffs, Nintendo is an outlier with continued hiring and workforce expansion. According to its most recent financial report, the Kyoto-based company increased its employee count by 6%, from 7,724 to 8,205, reaching its highest staffing level to date.

Moreover, Nintendo’s attrition rate remains below 2%, which is notable in an environment where many companies use “efficiency” as a euphemism for cutting costs and reducing headcount. This growth runs counter to the general trend among public game companies, suggesting a different approach to workforce management.

Nintendo’s Workforce Growth Amid Industry Layoffs

Nintendo Sees Growth Amid Industry Layoffs

The gaming industry is experiencing a split in employment trends based on company ownership structures. While public gaming firms in North America and Europe have been reducing staff (collectively cutting an estimated 9% of their workforce year-over-year) many privately held studios in Europe are growing their teams.

An analysis of the fifty largest European game makers reveals this clear divide: since 2023, publicly traded firms have reduced their workforce by about 25%, whereas private companies have increased their employee numbers by around 8%. Some private studios demonstrate this growth clearly. For example, Dream Games expanded its workforce from 219 employees to 364 over two years, a 67% increase, even as many competitors were downsizing.

Video Game Industry Workforce Tracker 2025

Other private studios such as Moon Active and Huuuge Games have also increased their headcount steadily. This difference largely arises from the contrasting pressures faced by public versus private companies. Public firms are subject to quarterly earnings expectations and investor scrutiny, which makes layoffs a quick and visible tool for cost control.

Private companies, in contrast, have more flexibility to adjust budgets, pause projects, or accept lower profits for short periods without immediate market consequences. Jason Kingsley, CEO of the private studio Rebellion, highlighted this distinction by noting that the company carefully controls its budget with the aim of creating quality games that have a reasonable chance of profitability, rather than chasing rapid growth. This strategic focus allows some private studios to maintain or grow their workforce even in challenging market conditions.

Video Game Industry Workforce Tracker 2025

Models Influencing Labor Strategies in Gaming

The difference in labor strategies between public and private companies reflects deeper structural contrasts. Public companies operate similarly to financial instruments, focusing on meeting investor expectations through cost management and efficiency measures, often resulting in layoffs.

Private firms tend to operate more like product-oriented businesses, placing greater emphasis on creative control, long-term planning, and talent retention. This leads to different decisions regarding staffing, with public companies more likely to reduce headcount to meet margin targets, while private studios aim to preserve their development capacity by adjusting other aspects of their operations.

This divergence also points to a broader industry tension between market demands and creative needs. Financial markets favor predictability and steady returns, whereas successful game development often requires experimentation and risk-taking. Larger public companies, despite their resources, are less inclined to take significant creative risks and frequently outsource innovation to smaller private studios that, while having fewer resources, can operate with greater flexibility and urgency.

The labor trends identified in Europe are not confined to this region or to mobile gaming; they are part of a wider industry realignment. Public companies are increasingly consolidating and reducing staff, while private studios continue to invest in talent and innovation despite financial pressures.

Nintendo’s Workforce Growth Amid Industry Layoffs

Nintendo’s Long-Term Approach to Workforce

Nintendo’s consistent workforce growth during a period of industry contraction illustrates a different model of efficiency. Unlike many public companies focused on short-term margin optimization through layoffs, Nintendo appears to prioritize productive capacity and sustained value creation. The company’s approach involves careful management of staffing levels, focused investments, and a long-term perspective that resists market pressures for immediate cost-cutting.

This strategy suggests that efficiency can be measured not only by reducing expenses but also by maintaining the capacity to develop high-quality products over time. Nintendo’s steady staffing increases indicate an emphasis on preserving the resources necessary to support long-term growth and innovation.

Final Thoughts

The gaming industry’s labor market is undergoing a clear realignment, characterized by contrasting strategies between public and private companies. Publicly traded firms are reducing staff as a response to investor demands and financial pressures, while private studios and companies like Nintendo maintain or grow their workforce by focusing on long-term planning and creative capacity.

This divergence points to a shift in risk management, with public companies opting to de-risk operations through staff reductions, while private studios absorb more risk in order to sustain innovation and development. Nintendo’s approach serves as an example of how steady workforce growth, aligned with long-term objectives, could become a defining feature of the industry’s next phase.

Source: SuperJoost