As Nintendo’s financial woes continue, company boss Satoru Iwata makes plans to halve his paycheck to reflect the Japanese gaming giant’s dire straits.
In a rather admirable move, prominent Nintendo executives–including acting company President Satoru Iwata–will be taking salary reductions in order to better stabilize Nintendo’s current market failures.
Over the past few months, Nintendo’s once-strong hold has turned into a tenuous grasp as their flagship Wii U console continues to flop. Due to the system’s poor performance, Iwata informed shareholders of an impending loss of $336 million in projected sales, along with a staggering $1.2 billion from share drops as a result of the announcement.
As an effort to compensate for the recent losses as well as to reflect the company’s current downward slide, Nintendo President Satoru Iwata will slash his salary by 50% over a five-month period from February to June.
Shigeru Miyamoto will also be taking a 30% reduction (despite the overwhelming positive sales and reception of The Legend of Zelda: A Link Between Worlds), and Genyo Takeda’s pay will be reduced by 30% as well. Other Nintendo board members plan to take a 20% pay cut.
At the end of the five-month period, further changes in salary will be determined after an analysis of Nintendo’s overall market stance during that time. This is undoubtedly the first phase in the much-needed change that Iwata acknowledged during the shareholders meeting, and it will be interesting to see what future plans the company has.
Furthermore there have been rumors of Nintendo working on Nintendo Fusion, a new next-gen console-and-handheld combo that may revitalize the company’s stake within the video game market.
Currently Nintendo remains afloat thanks to strong 3DS sales and capital assets gained from sales of the original Wii, but it appears new hardware is needed to bring the Japanese games maker back into the game.