Following the news that Nintendo has reduced its expected profits for the year, a number of key executives have taken pay cuts.
The company yesterday modified its financial forecast for the current fiscal year ending March 31, 2012, reducing its expected profits for the fiscal year by 81.8 percent.
As part of a shareholders meeting today, as reported by Kotaku, Nintendo president Satoru Iwata said that he felt responsible for the 3DS not selling as well as the company had hoped.
He also revealed that he will be taking a significant cut to his fixed salary, as will other Nintendo bosses.
"For cuts in fixed salaries, I'm taking a 50 percent cut, other representative directors are taking a 30 percent cut, and other execs are taking a 20 percent cut," said Iwata.
Wow, I have to say, I'm impressed. Although I haven't been a fan of Nintendo for quite a while, this at least shows me that the execs are willing to sacrifice for the company. Of course, they're probably still making more than most of us and I don't even want to ask how much, but he could have easily blamed it on something else and kept his salary.
@Arnaud--Thanks for the sarcasm--appreciated greatly--and I'm sure they did think about it..but they sure as hell made no action to do so...in all honesty..that's what it comes down to...the games that are out there are mediocre at best. There's a few gems..but theres more SHIT for the platform---it's not enough to entice people to buy the damn thing.
And they really need to get some GOOD games on the eStore--I understand that there are plenty of people that enjoy playing retro games...but I bought a 3DS for the improved graphics and the 3D--not to play fucking GB, GBA games--as for the 3D retro games...what a cop out...I played excitebike for like 5 minutes and probably will never go back to it...
If they released the 3DS with Metal Gear Solid and a new Mario Kart, and if Resident Evil Mercenaries hadn't made a lot of save game controversy, things would have been so different.
I'm still considering on buying a 3DS, the catalog involving Smash Bros 4 is tempting.
Very inspiring. In western societies, they would fix the problem by gutting staff that had nothing to do with the failure. If all CEOs were willing to take this attitude, I might not mind them getting paid 170 times what the grunts make.
Seriously, when half the income of the company goes to like 10 people and the other 1000 are risking firings and pay cuts, should be the people running the company that take the pay cut. The goal should be to run the company, which means keeping as many of your employees as possible.
Better battery life would encourage me to buy one more than a price cut. My friend and I are waiting for the inevitable Improved Model before really considering it, though a lot of the Improved Models have been slimmed down and I don't like that.
Considering their meteoric rise during the Nintendo DS and Wii heydays I would assume the execs were raking in a lot of money. As an organization Nintendo is pretty lean. Their staff growth curve was interesting when you consider how successful they have been as of late. You can read more about in in the book Nintendo Magic
somewhat true, he is still making more than most people for sure, but willingly cutting your own salary by 50% still is a lot of money and more of a "symbolic" move so i would say it does mean a lot regardless how much he still gets
There is a reason that Nintendo has been around for more than a century. The Nintendo mindset is a product of a culture completely different than that found in the western world, especially America.
Japanese culture has its faults, such as their unwillingness to listen to the "little people", but they are nothing if not focused on the long-term. Kudos. Much respect.
Nintendo has lower than expected sales so the execs take a pay cut.
Banks destroy international economy, get bailed out by the government, lay off a large number of their grunt workforce and their execs still get a christmas bonus and probably not long later a pay rise.
This isn't just a job to Satoru Iwata. Clearly this is a man that has to wrestle with how to keep an organization that he cares deeply about during this great market upheaval. This is exemplary behavior for a leader, one rarely mimicked by his counterparts in the business.
You want businesses in north america to do the same? First step is to realize that *workers* own the biggest chunk of the shares (and thus the votes) of most public business through their retirement funds. In Canada the biggest investment fund is famously Ontario's teachers union fund. Of course if you gave your money to a bank or financial and ask it to invest it for you, they'll vote as they see fit.
Step 1: Get back control of your finances. Fund managers arent smarter than you and they will always manage for the short-term.
Props to Nintendo anyhow. Personally I avoid investing in cies that have overpaid directors.
@ Anthony Taylor - For the most part, that's pretty much true, and as Philip-Michael said, you get the cake. As for the topic of this article, it doesn't matter that Iwata was making huge money before and that the pay cut might sound like nothing to sneeze at. What's important is the principle behind the pay cut! Iwata took responsibility instead of firing the grunt workers, and no matter how much money one person was making before, a 50% pay cut is quite big and a big deal. It is a good lesson to be learned, in my opinion.
You own mutual funds, not common stock, as a part of a 401k or other retirement instrument. So you don't get direct voting rights. I have a feeling this did not come down to a share holder vote.
This pay cut sends a stronger signal to their investors, not their customers so I'm reserving my applause. Now if they were to take a lower pay cut and satisfy members of Operation Rainfall that would be a huge plus for their image. Then again we still don't what the plans are for releasing those games in the US.
But a customer IS an investor in the company. I think organizations that fail to realize that customer and investor are one in the same are bound to make products that are short-sighted, retreat from innovation when faced with failure, and fall into obscurity.
No they aren't unless they own shares obviously. If you argue that buying a game is investing in future games while that may be ultimately true that's not the reason people buy games.
If all you wanted to do was make your customer happy then you would give it away for free (with no IAPs) but that wouldn't make your investors very happy.
And ultimately that's the trick for these guys, pleasing both.
@ William Collins - The problem with The Last Story, Pandora's Tower, and Xenoblade not coming to the USA has more to do with Nintendo USA, but I'll admit that Nintendo Japan shouldn't completely depend on Nintendo USA when it comes to customer reaction info. For whatever we know, Nintendo USA may claim one thing to Nintendo Japan, while the customer reactions display something totally different from Nintendo USA's claims. In other words, Iwata and Nintendo Japan themselves should roll the dice and tell Nintendo USA that the aforementioned games should be released in the USA and not rely on what Nintendo USA is claiming, assuming that Nintendo USA is the one that is telling Nintendo Japan that the games shouldn't be released in the US (I don't know what really goes on behind the scenes, so what I say is based on assumptions).
Nintendo USA is under the same umbrella but operate differently, so they don't have to localize and release a game that sold (either really well or poor) in Japan, even if Nintendo Japan says it will. It sucks because there are, as far as I know personally, some idiots who THINK they know what will sell and not take any risk whatsoever.
Anyways, kudos to Iwata for this course of action and hope this lesson is learned. God knows EA should have done this a long time ago.
@ Eric McVinney - It is not just EA that needs to do that nor just the companies within the videogame industry, but I agree with you and I hope that Nintendo Japan keeps on setting the example that it just showed.
Iwata taking 50% pay cut... classy move. I should see if he needs a roommate to help with rent since he'll likely only be making 1 mil a year now. Poor guy.
Japanese people is amazing, and Nintendo is a real image of that. Now, I want Nintendo to really fix the issues of 3DS and WiiU (we all know that there are too many issues there) and get lots of games for every gamer and non-gamer in the world.
If all execs start taking pay-cuts like those, some might end up having to pay the company. There is a firm belief that he will bounce back and that's why he took it. That's Nintendo.
Reggie: what the hell man?!
@Nathaniel...that made me chuckle. :)
You should work for them as a consultant!
And they really need to get some GOOD games on the eStore--I understand that there are plenty of people that enjoy playing retro games...but I bought a 3DS for the improved graphics and the 3D--not to play fucking GB, GBA games--as for the 3D retro games...what a cop out...I played excitebike for like 5 minutes and probably will never go back to it...
I'm still considering on buying a 3DS, the catalog involving Smash Bros 4 is tempting.
Harsh but true.
Japanese culture has its faults, such as their unwillingness to listen to the "little people", but they are nothing if not focused on the long-term. Kudos. Much respect.
Banks destroy international economy, get bailed out by the government, lay off a large number of their grunt workforce and their execs still get a christmas bonus and probably not long later a pay rise.
Which of those two deals makes more sense.
Nintendo should buy out a few banks.
Much respect.
Step 1: Get back control of your finances. Fund managers arent smarter than you and they will always manage for the short-term.
Props to Nintendo anyhow. Personally I avoid investing in cies that have overpaid directors.
If all you wanted to do was make your customer happy then you would give it away for free (with no IAPs) but that wouldn't make your investors very happy.
And ultimately that's the trick for these guys, pleasing both.
Anyways, kudos to Iwata for this course of action and hope this lesson is learned. God knows EA should have done this a long time ago.
How I regret being on Sega side during early console wars... I keep flaunting Sega around, but then Nintendo always come and do something awesome. :(