Gamasutra: The Art & Business of Making Gamesspacer
arrowPress Releases
April 23, 2014
PR Newswire
View All





If you enjoy reading this site, you might also want to check out these UBM TechWeb sites:


Nintendo management taking pay cuts after poor fiscal results
Nintendo management taking pay cuts after poor fiscal results
January 29, 2014 | By Mike Rose

January 29, 2014 | By Mike Rose
Comments
    13 comments
More: Console/PC, Business/Marketing



Following its latest poor fiscal results, Nintendo said today that its president and board members will take pay cuts to make up for the weak demand for its Nintendo Wii U console.

Nintendo revealed today that its Nintendo Wii U has only sold 5.86 million hardware units after more than a year on sale -- notably, both the Xbox One and PlayStation 4 consoles have nearly outsold it after just two months.

Nintendo president Satoru Iwata said today that he will cut his pay in half for the next five months, while other members of the board will take a pay cut anywhere between 20-30 percent, reports the AFP.

Furthermore, the AFP reports that Nintendo intends to buy back nearly eight percent of its outstanding shares from shareholders in an attempt to buoy the value of its stock.

Update: Bloomberg reports that Iwata issued a statement suggesting that shareholders look upon the buyback as an attempt by Nintendo to reward them in lieu of substantial stock dividends.

"We’ve been rewarding our shareholders mainly through high dividends, but we cannot generate as much profit as we used to make,” stated Iwata.



Related Jobs

Turbine Inc.
Turbine Inc. — Needham, Massachusetts, United States
[04.23.14]

Director, Analytics Platform Development
Linden Lab
Linden Lab — San Francisco, California, United States
[04.23.14]

Sr. Front-end Web Developer
Linden Lab
Linden Lab — San Francisco, California, United States
[04.23.14]

Sr. Software Engineer, Back-end
Linden Lab
Linden Lab — San Francisco, California, United States
[04.23.14]

Lead Engineer










Comments


Joe Zachery
profile image
Where others would lay people off. They take the hit so everyone can still work!

Troy Walker
profile image
This is a pretty rare instance of company leadership standing up and doing something honorable...

Jeferson Soler
profile image
@ Troy Walker - That's what I like about Iwata! He and his team did the right thing, but I believe that the Western Nintendo executives should also get a pay cut as they could have done more to help Nintendo with the Wii U sales. In the US, the Wii U would have sold even more if marketing was better, but NoA (especially Scott Moffit and his marketing team) not only failed to do a strong marketing campaign for the Wii U, but they also tended to do it on the cheap (as in, mostly Internet marketing and not too much TV marketing). In any case, it is very noble what Iwata and his team are doing and it is one of the reasons why I feel that they should stay on-board (especially Iwata).

John Flush
profile image
This isn't even the first time they have done something like this. This is why, despite some of the games and characters begin to wear on me, I try to get my kids and myself to be interested in Nintendo. This company is one of the few big companies where the CEO and executives don't run it into the ground for short term profits. Now, if only I could get more interested in the Wii U...

Evan Combs
profile image
Is this a Nintendo thing, or just a Japanese thing in general?

Harry Fields
profile image
I think it's common in many places. If a CEO gets to keep his job when the company hits rough waters, there's usually a cut in compensation, with restoration tied to the company meeting certain goals for returning to profitability. Hirai took a cut last year (will probably take another after the latest news). It's the financial sector CEOs that seem to get pay increases for failing at their jobs.

Eric Geer
profile image
The unfortunate part is that I really love the WiiU games that are out....Windwaker, Pikmin 3, Lego City Undercover, Monster Hunter 3U, ZombiU, Splinter Cell, Wonderful 101, Mario 3d World, SMBU, NFS Most Wanted, Assassin's Creed Black Flag, as well as others. It's unfortunate to say the least...but glad that management is taking the responsibility for the failure in sales.

Merc Hoffner
profile image
I think Iwata is one of the most insightful, daring and responsible CEOs out there. I certainly hope this staves off the shareholders chasing him out because they won't find someone else who could deliver a 'Nintendo Revolution' in short order, and would set a terrible double standard when you look at the financials at Sony, EA, Take-Two etc.

Benjamin Quintero
profile image
I wish American CEOs and politicians would take note instead of blaming the people for poor financial results. Apparently some CEOs problems are not a long string of bad releases, its that we arent buying them fast enough. That makes sense :).

Eric McConnell
profile image
Powerful Satoru Iwata

Josh ua
profile image
In the US, they'd fire the CEO and he'd get a $20 million parachute package.

Ratio of CEO pay to average worker in the US is 354:1, Japan 67:1

http://www.aflcio.org/Corporate-Watch/CEO-Pay-and-You/CEO-to-Work
er-Pay-Gap-in-the-United-States/Pay-Gaps-in-the-World

Eric Harris
profile image
I have a good feeling about the Wii U returning to a profitable system if Nintendo stands by it. The other next gen consoles are in bigger trouble than Nintendo.

Eric Geer
profile image
I hope they turn it around like the 3DS, 3DS has some incredible games and I think those experiences are possible, plus more, on the WiiU


none
 
Comment: