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.