Nintendo execs take pay cut and profits fall by 30 per cent

David Wildgoose
Nintendo execs take pay cut and profits fall by 30 per cent

Nintendo president Saturo Iwata has volunteered a 50 per cent wage cut as the company announced its latest set of poor financial results.

The dock in wages will last for five months and is being pitched as a compensation of the company’s recent poor performance. Other board members are to take cuts of between 20 and 30 per cent.

For the nine months ending December 31 Nintendo recorded sales of ¥499bn (AU$5.6bn), down eight per cent year-on-year. Profits fell 30 per cent to ¥10.1bn (AU$113m).

The bright points? Three Wii U releases sold over 1m units – Super Mario 3D World, The Legend of Zelda: The Wind Waker HD and Wii U Party.

The bad points? Wii U sold just 2.41m units in the period, leaving a further 400k global unit sales being required by March 31 to hit its recently downgraded target.

Said the company: “The Wii U business as a whole was not able to recover fully [and] still has a negative impact on Nintendo’s profits owing mainly to its markdown in the United States and Europe, and sales of software, which has high profit margins, did not grow sufficiently.”

Lifetime Wii U hardware sales stand at 5.86m units and 3DS at 42.74m units. Wii’s lifetime sales have reached 100.90m units and DS 153.98m.

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Tags: Nintendo , Wii U , satoru iwata , financials

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