Nintendo Slashing Employee Bonuses

[Greg Tito]

Nintendo Slashing Employee Bonuses

After an E3 short on details, Nintendo cuts back.

Nintendo has been one of the most successful companies in the videogame biz. Even after relatively poor sales of the Gamecube, the Japanese hardware maker bounced back big time with the casual sales of the Wii. Last year, the handheld 3DS went from critical darling to a snore-fest on store shelves. A price cut and some high-profile games helped sales [http://www.escapistmagazine.com/articles/view/editorials/reviews/8959-The-Legend-of-Zelda-Ocarina-of-Time-Review], but that didn't prevent Nintendo from posting its first annual loss of money ever for the fiscal year of 2011. In response, a report from Japanese paper Nikkei claims the company is slashing the summer bonuses usually given to executives at this time of year.

Nintendo President Satoru Iwata famously reduced his own salary by half after the poor launch of the 3DS [http://www.escapistmagazine.com/news/view/111963-Nintendo-CEO-Takes-50-Pay-Cut], but he now has extended that policy to his top executives. Bonuses have been cut by 20 percent across the board.

Who knows if this will make a dent in the $531 million operating loss Nintendo reported in April [http://www.escapistmagazine.com/news/view/116974-Nintendo-Records-First-Ever-Full-Year-Loss-in-2011], but it has to help. Of course, if Reggie Fils-Aime - President of Nintendo America - made a big splash last week at E3 and the Wii U was a guaranteed success, all this would be forgotten. But ... yeah.

Source: Reuters [http://www.reuters.com/article/2012/06/11/us-nintendo-nikkei-idUSBRE85A1GE20120611]

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[Baresark]

I just feel that they forgot who they are catering to. You can't go the E3 and not having some awesome showings. No one there cares about casual gaming, they want to see the next big thing, which isn't a new party game. I am gonna get one as long as there are at least 2 games on launch that I want. But you have to deliver.

The executives don't deserve any bonuses. They aren't putting the company in a direction that will lead to it's success. They are in a bad position. Japanese gaming has become stagnant, and Nintendo is still trying to feign success off of the Wii which probably hasn't moved from the shelves in a year or more. At least compared to the counterparts. Nintendo needs to put out a new system right now and they need it to be successful.

 

[Mr.Mattress]

Well, at least they aren't laying off people. I have a feeling by the beginning of next year, they'll be back on track though.

I just feel that they forgot who they are catering to. You can't go the E3 and not having some awesome showings. No one there cares about casual gaming, they want to see the next big thing, which isn't a new party game. I am gonna get one as long as there are at least 2 games on launch that I want. But you have to deliver.

If Nintendo didn't show awesome things at E3, then every one who showed games at E3, with the possible exception of Ubisoft, could be in some serious trouble.

 

[Qitz]

I will say I'm glad they were at least smart enough to do it to the execs and not to the actual workers.

Still, this isn't going to be the absolute death of Nintendo but it could hamper them a bit. So long as they actually get a good launch lineup for the Wii U it will pull them up though.

 

[Aiddon_v1legacy]

I can already see the Yahtzee-wannabes blindly parroting "derp, Nintendo is doomed, just make games fer better consoles, hyuk-hyuk!".

And seriously Tito, cut the shit with Nintendo's presser not being a success. If anything this proves that even the press needs to realize E3 is a trade show and not some fan convention.

 

[Greg Tito]

And seriously Tito, cut the shit with Nintendo's presser not being a success. If anything this proves that even the press needs to realize E3 is a trade show and not some fan convention.

What were you excited about in the Nintendo Press conference? I'm just curious. The two games that looked interesting were Pikmin 3 and some of the aspects of Nintendo Land, but otherwise it seems Nintendo talked a lot without saying anything. Where was the release date for the Wii U? The launch lineup? The pricing? If this is indeed supposed to go out this holiday, they have to announce it soon.

There actually is a Nintendo event planned in NYC at the end of the month. Perhaps we'll get that info then.

 

[Danzavare]

I admire the fact that the higher-ups are taking the brunt of the losses. I imagine it'll hurt, but not as much as it'd hurt everyone else.

I have to admit, I'm secretly hoping that Nintendo is forced to abandon its home console hardware and start building games for the 360 and PS3 (Of course I'd be hard pressed to imagine it'd give up handheld stuff).

I can already see the Yahtzee-wannabes blindly parroting "derp, Nintendo is doomed, just make games fer better consoles, hyuk-hyuk!".

I wouldn't say it's doomed but for those that don't find the gimmicks of the Wii (and probably the Wii U by extension) to enhance the gaming experience in any way it's not an entirely unreasonable desire to have. As far as my experience with the Wii goes, I can safely say most if not all the Wii games I play could benefit from the hardware of the 360 or PS3 (Whether that means better gameplay or graphics) and wouldn't be any worse without the gimmicks.

Obviously it's fine to enjoy the Nintendo consoles and not want them to disappear (I know I certainly wasn't happy when Sega stopped making its consoles) but the desire to have Nintendo games go multiplatform is hardly irrational.

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