History Repeats Itself: Iwata Accepts 50% Pay Cut Following Nintendo’s Financial Woes


History Repeats Itself: Iwata Accepts 50% Pay Cut Following Nintendo’s Financial Woes

In light of last week’s financials, Nintendo’s president Saturo Iwata has confirmed that he is to take a 50% pay cut to compensate for the company’s fall in profits. Following alterations to the sales expectations for Wii U and 3DS, the big N’s share price dropped by a staggering 17%, which typifies a disappointing year for the esteemed developer after it recorded its third consecutive annual loss.

Along with the company’s president, Shigeru Miyamoto and Genyo Takeda are to take up 30% pay cuts, respectively, while other members of the Nintendo board will omit 20% from their salaries. This rather humble acknowledgement is set to come into effect at the beginning of February and will last for five months. From then, Nintendo plans to review the financial performance and make further adjustments accordingly.

Interestingly, this wage reduction echoes the 3DS price cut back in 2011; a time that also saw Mr. Iwata sacrifice 50% of his paycheck in response to sub-par financials. In fact, Nintendo’s president displayed his resilience recently when he refused to resign from his position in the face of growing monetary pressure — pressure that doesn’t mean introducing Mario et al. to smartphones, mind you.

In terms of future plans, Iwata confirmed that the company is to meet tomorrow to discuss its business projection for the new fiscal year. Given that 2013’s brief financial turnaround was largely due to an abnormally weak yen, Nintendo has its work cut out if it is to revive business momentum. A five month interlude will undeniably buy Iwata & Co. some respite to assess their management strategy, but only time will tell whether Nintendo can steer the Wii U, and indeed its gaming reputation, back on course.

Source: AFP

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