satoru_iwata

Nintendo president Satoru Iwata made a few comments yesterday ahead of the company’s investor briefing. First off, it has been confirmed through Nintendo’s financial report that Iwata will be taking a 50 percent pay cut. Japanese publication Nikkei has reported that Iwata’s salary will be reduced for a five-month period from February until June. Iwata isn’t the only Nintendo executive to take a pay cut, however. Furthermore, Iwata has admitted that the Wii U currently isn’t doing very well. Learn more about Nintendo’s current situation after the jump.

Representative directors Genyo Takeda and Shigeru Miyamoto will take a 30 percent pay cut, and all other board directors will take a 20 percent reduction in pay. All these pay cuts won’t really affect Nintendo’s savings too much, but these pay cuts are a symbolic acknowledgment of the company’s recent struggles; the company is admitting that they have not done their best to remedy and prevent their current situation. Iwata added that future salaries will be evaluated based on the business environment at that given time.

Iwata issued a comment regarding where his focus is. He says that he isn’t focused on how he would take responsibility of any failings in the future, but he is instead focusing on rebuilding Nintendo:

“I’m concentrating my mind on how to rebuild Nintendo rather than how I would take responsibility when things don’t work out in the future.”

Regarding Nintendo’s buyback initiative, Iwata stated that Hiroshi Yamauchi’s heirs will have to pay inheritance taxes and that they may need to sell their shares. He also made a remark regarding Nintendo’s shareholders, stating that the company cannot generate the profit that it used to make:

“That won’t merit shareholders, that’s why we decided on the buyback. But that’s not all the reason. We’ve been rewarding our shareholders mainly through high dividends, but we cannot generate as much profit as we used to make.”

He then went on to comment on how the Wii U wasn’t doing very well:

“The Wii U isn’t in good shape. That’s the presumption we have as we consider reform”

Iwata went on to state that he doesn’t believe that a price cut of the console would spur fresh demand for the console. So it seems that a price cut for the Wii U in the recent future is unlikely.

What do you think of Nintendo’s current situation? Can Iwata navigate the company out of this struggling financial period? Can the Wii U recover and be a success? Let us know in the comments.

Source: Nikkei [1], Businessweek [2], Forbes
Via: Nintendo Everything [1], Nintendo Everything [2]
  • Nelson Saavedra

    They need to rename the Wii U that was their #1 mistake with this console

  • Christopher Wheeless

    I personally love the wii U however it is not like the other systems out there the it is competing with. If there was another contender on the field that Nintendo could do battle with in the game market it could thrive in a redefined sector of its own in the gaming world. However unless they go back to a console as user friendly and versatile with current game interests in the market like the Gamecube than I see grim tidings in the future for Nintendo.

  • FVMF

    One solution would be to release your next big Zelda hit…

  • Jaidyn Reiman

    Honestly I still want a Wii U moreso than the other consoles. I’m a little interested in PS4, but I won’t get that for a couple of years. We’re going to get PS3 first mainly because my wife wants it. There’s a few games on PS3 I’d like, primarily a whole bunch of Tales games, but there’s so much more on Wii U I want. I also have a bunch of Wii games I can’t play because I’m not living close to my parents’ place anymore who have a Wii.

    • Anthony Moseley

      I have a Wii U and the only other console I’m interested in is a PS4. I was mildly interesting in the Steam Box until I took a look at the price tag. Valve is almost as money hungry as Microsoft.

  • Giovanni Ceron Caratini

    Why would they release a console that barely matches the last generation’s features (360/ps3)? Why would they name their new console almost exactly the same as their previous one? Why would they design the consoles to look so similar? Why insist on regurgitating the same games over and over (mario etc)? Why haven’t they tried to get more “mature” or “adult appealing” games on their console? Why didn’t they wait to release the Wii U until quality games could be released with it (Zelda, Smash bros, Metroid, etc)? Why haven’t they partnered with Retro to produce another Metroid masterpiece? Why would they destroy the metroid franchise with crappy Metroid: Other M? Why not license their names and characters to be used for mobile gaming? why? WHY? WHYYY?!!!!

    • Anthony Moseley

      “Why insist on regurgitating the same games over and over (mario etc)?”

      Yeah, because clearly no other gaming consoles do this. It’s obviously just Nintendo. Your argument immediately failed when you typed this.

      • Giovanni Ceron Caratini

        I see you lack understanding about invalid arguments. Please consult the following link about the tu quoque fallacy that you just committed:

        http://www.nizkor.org/features/fallacies/ad-hominem-tu-quoque.html

        • Soeroah

          I don’t think the fallacy he committed was the kind you linked. None of the examples in that link really apply to what he said.

    • Keimori

      Because They’re Human, not perfect beings incapable of making errors.

      So they made a Metroid game with a bad story, so they’ve made a few missteps with the Wii U, They’re aloud to.

      Clearly its cost them but at this point its nothing they can’t fix.

      “Why insist on regurgitating the same games over and over (mario etc)?”

      Because clearly it works, They’re fun solid games that change just slightly enough to stay fresh and enjoyable.

      “why haven’t they tried to get more “mature” or “adult appealing” games on their console?”
      Because Nintendo has a public image to maintain, they’re the “Disney” of the gaming world and if they get too many “mature” games on their system it’ll ruin their image in the eyes of parents.
      Not only that but the M rated shooters have their audience already in the form of the X-BOX, anyone that’d be drawn to a Wii U by, say for example, a COD game already owns a X-Boxone and aren’t likely to buy a Wii U anytime soon.

      • Giovanni Ceron Caratini

        This is the same fantasy that Nintendo wanted to make themselves believe, and it is exactly why Nintendo’s CEO is now cutting his own salary in half.

        BTW, if Nintendo made a worthy console, it could produce and feature M rated games just as well as Sony or Microsoft. Let alone make money of them.

        • Morgan

          If you read our summary of Nintendo’s quarterly briefing, Mr. Iwata explains why Nintendo doesn’t take this approach and why Nintendo does not believe it would be beneficial to their medium and long-term success.

          • Giovanni Ceron Caratini

            For the sake of clarification. By M, or “mature” games, I do not necessarily mean: gory, shooters, killing, war, assassinations, etc. I simply mean quality games. They have done it before with Zelda, Metroid Primes, oo7 on the 64, Pikmin, and so on. Or simply put, games geared towards a more sophisticated audience.

          • Giovanni Ceron Caratini

            For the sake of clarification. By M, or “mature” games, I do not necessarily mean: gory, shooters, killing, war, assassinations, etc. I simply mean quality games. They have done it before with Zelda, Metroid Primes, oo7 on the 64, Pikmin, and so on. Or simply put, games geared towards a more sophisticated audience.

        • Keimori

          there’s not a single problem with the console besides its current sales figures.
          If Nintendo wanted to make an M rated game for the Wii U they could easily do so as the hardware is more than capable of handling it, but it’s not their market, they know that “mature” games aren’t going to sell to their audience.
          Their best bet now is to work on games their audience will like and release them as soon as possible (within reason) because there’s no way they’re going to out CoD, CoD.

        • Morgan

          Also you do realize last hardware cycle the amount of money Sony was losing on PS3 units sold? Both Sony and Microsoft were running in the red while Nintendo was making a profit off of every system sold, and they sold over 100 million hardware units.

          • Giovanni Ceron Caratini

            Nintendo sure enjoyed excellent profit margins selling a console with outdated *cheap* technology ( at least not up to part with its competition), with “innovative” motion control gimmicks, which was heavily marketed towards families, children, and tweens. Whilst losing many of its more adult/serious-game oriented fans in the process(myself included).

            I don’t really care about what Sony or Microsoft are or were doing. Just look at the Nintendo isle at any gamestop and see the lackluster display of quality games. Why is it so difficult for some to acknowledge that there has been a serious mismanagement of Nintendo’s direction starting with the Wii??

    • Morgan

      Mr. Iwata explains a number of these points in his quarterly briefing. It is somewhat of a long read, but very informative and educational.

      • Giovanni Ceron Caratini

        where can I find this?

        • Morgan

          It’s on our website. Actually the story above this one on the main page. I know because I wrote it, lol.

  • Parker

    Well, we all know how good the 3DS is doing, and that’s because of everything going on for that system. AC:NL, Dark Moon, FE:A, ALbW.. just a few of the awesome games that came out in 2013. And not only retail games, but 3DS ware too. Granted, we’re lacking Flipnote 3D, but that’s barely a dent in the variety of things the eShop has to offer. Now even Four Swords is back! So, like everyone has been saying, wait until the big shot games are out for the Wii U to give it more momentum. Nintendo did make some mistakes with this one(like, better launch games would’ve helped), but by reaching out to to a wider audience, instead of just kids, I’m sure everything will be fine.

  • Alex

    The problem is the name .Wii 2 ,PlayCube/GameCube 2 could work .Also the console needs 3rd parties like resident evil .

    • Guest

      Yeah i guess they could .

    • GreatAlexander

      good idea .

  • Keimori

    I say they hurry up and release some Popular 3rd party stuff ASAP.
    Also, It wouldn’t hurt if they uploaded some N64 and GameCube hits to the eShop.

  • Isaac Ness

    Stop using Internet Explorer, ZU!!!!

    • Morgan

      is there a problem with something? I didn’t write the post but I use firefox. please let us know if there’s a problem and we’ll fix it ASAP.

      • Isaac Ness

        Not really, but by the time you publish something, every other gaming site had published the same thing 24 hours before

        • Morgan

          There were a lot of issues with various translations of what Iwata had to say. While we want to get news out as soon as possible, as a media outlet and as journalists, we value getting the information correct first and foremost. If you look at our summary of the Iwata briefing, it is probably one of the most comprehensive you will find online and it was published within 12 hours of an english translation being available.

  • Maureen

    The new Legend of Zelda could solve all their problems