Playing with Privilege: Nintendo's Annual Report Reveals a Last-Gen Mindset

The latest annual report from Nintendo has shed light on some intriguing facts that the company may not have intended to share. A few months ago, an analysis of the risk factors in the annual reports of Electronic Arts, Take-Two, and Activision Blizzard revealed some interesting insights, such as the negligible impact of piracy on their business and the potential issues with using open-source software. This week, Nintendo released its own annual report, which, although not particularly enlightening in terms of risk factors, did provide some notable tidbits. For instance, Nintendo has significant ownership stakes in several major game development companies, including Bandai Namco, DeNA, Square Enix, Konami, and Koei Tecmo, totaling hundreds of millions of dollars. Furthermore, the report highlights Nintendo's substantial research and development efforts, with an investment of $827 million in the last fiscal year alone. The company is exploring various technologies, including touch panels, sensors, wireless communication, security, cloud computing, virtual reality, augmented reality, mixed reality, deep learning, and big data analysis. While Nintendo's approach to labor unions is somewhat ambiguous, the report does provide some insight into the company's workforce. Notably, there is a significant pay gap between male and female employees, with women earning approximately 70 cents for every dollar earned by men. The company attributes this disparity to differences in length of service and average age. However, this explanation raises questions about the company's historical hiring and promotion practices, which may have contributed to the current lack of diversity in its workforce. In fact, only 4.2% of Nintendo's management positions are held by women, indicating a significant underrepresentation of females in leadership roles. The report also highlights Nintendo's efforts to support employees with families, including a goal to increase the percentage of male employees taking childcare leave to 50% over the next five years. While this initiative is a step in the right direction, it is essential to acknowledge the broader issue of systemic discrimination in the gaming industry. The industry's history of elevating and tolerating a specific mix of attributes has resulted in a lack of diversity and inclusion. To address this, key leaders like Nintendo must recognize the need for change and actively work to create a more welcoming environment for underrepresented groups. Ultimately, the gaming industry must course-correct and intentionally change its makeup to become more inclusive and diverse. This requires a concerted effort from all corners of the industry, including developers, publishers, and media outlets. By acknowledging and addressing these issues, the industry can work towards creating a more equitable and diverse environment for everyone involved.