Nintendo President Satoru Iwata has announced that his pay will be halved for at least five months in the wake of a 30 percent decrease in company profits, while other board members, including legendary game designer Shigeru Miyamoto, will see cuts of 20 to 30 percent.
Nintendo reported profits of 10.2 billion yen ($99 million) from April to December, down from 14.55 billion yen ($142 million) for the same period in 2012. The company is also now forecasting a loss of 25 billion yen ($242 million) for the fiscal year through March 2014, a reversal from the previously forecast profit of 55 billion yen ($532 million).
To offset these diminished numbers, and to take responsibility for poor performance, Satoru Iwata has publicly stated that his pay will be reduced by 50 percent until June. Shigeru Miyamoto will see a 30 percent pay decrease, and eight other board members will lose 20 to 30 percent off the top of their paychecks. When asked if these reductions could continue beyond June, Iwata responded, “I will make a decision after looking at the management situation at that time.”
Nintendo expects continuing underperformance for fiscal 2014, reducing its annual sales forecast to 2.8 million Wii U units and 13.5 million 3DS units, down from 9 million and 18 million, respectively.
“In the fourth quarter, we expect sales to decrease significantly due to seasonal factors as the year-end sales season concludes,” said Nintendo.
Strong critical reception for late-2013 releases of games such as Pokemon X/Y, Super Mario 3D World, The Legend of Zelda: A Link Between Worlds, and The Legend of Zelda: The Wind Waker HD, as well as anticipated releases in the Donkey Kong, Mario Kart, and Super Smash Bros. franchises in the upcoming year, could aid Nintendo in 2014.
[AP]
