Nintendo CEO Taking Huge Pay Reduction Due to the Wii U

[Alex Co]

Nintendo CEO Taking Huge Pay Reduction Due to the Wii U

Nintendo boss Satoru Iwata and other execs are taking a huge pay cut due to the Wii U failing to meet sales projections.

Following Nintendo's poor performance with the Wii U last year that necessitated major reductions in its sales projections [http://www.escapistmagazine.com/news/view/131419-Nintendo-Makes-Major-Reductions-in-Wii-U-3DS-Sales-Projections], Nintendo CEO Satoru Iwata is shouldering the responsibility by taking a huge 50% pay cut. Other company directors haven't been spared, as their salaries are also being reduced but at a more conservative 20 to 30 percent. This pay cut will begin next month and will last until June this year. After the time frame, a salary decision will be made depending on Nintendo's standing.

In Nintendo's recently released financial statement [http://www.nintendo.co.jp/ir/pdf/2014/140129e.pdf], it revealed that the company amassed over $15 million in operating loss from April to December due to the Wii U not meeting sales projections.

While these titles each sold over one million units, the "Wii U" business as a whole was not able to recover fully, and the global sales of the "Wii U" hardware and software reached only 2.41 million and 15.96 million units respectively.

Nintendo's hardships are nothing new, with the ruled out making smartphone games [http://www.escapistmagazine.com/news/view/131421-Updated-Nintendo-Considering-Smartphone-Games-Restructuring] -- at least for now.

Is Iwata the one to blame for the Wii U's failings? How would you think CEOs in U.S. companies would react if they had to take a pay cut whenever their companies underperformed?

Source: Kotaku [http://www.nikkei.com/article/DGXNASHD29013_Z20C14A1000000/]




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[AldUK]

Nobody can truly argue with a straight-face that the tech inside the Wii-U is comparable to Sony and Microsoft's offerings. I think dated technology in the machine is the true failing, since one of the main reasons the Wii-U isn't selling is because it has too few games. The reason for that, is because developers have stated that they don't want to develop for a console that is behind the times and making their latest games work on all 3 systems is almost impossible.

Sure you can blame Nintendo's marketing campaign and confusion over exactly what the console is, but without games, it'll never pick up sales. I know I'll probably be slammed for even suggesting this, but I really do think it's time for Nintendo to move away from the console market. Imagine Nintendo PC games and tell me how that would really be such a bad thing.

I can't help but feel that if they rush out another console to try and save face (and profits) and it misses the mark again, it could be the last nail in the coffin. Nobody wants to see that.

 

[EbonBehelit]

I almost feel sorry for Masahiro Sakurai and his team: Nintendo NEEDS Super Smash Bros. to come out asap to boost sales. They must almost literally be breathing down his neck at this point.

 

[MrMixelPixel]

I guess I'm just happy to hear that there aren't gonna be massive lay offs? That's nice?

As long as Nintendo stays in business long enough for Smash Bros to come out... I'll be satisfied.

(I know Nintendo is going out of business anytime soon. Stop yelling at me.)

Edit: Meant to say, Nintendo isn't* going out of business.

 

[Dark Knifer]

Well I must say its good of them to accept responsibility like that. CEOs of us westerners would just bankrupt the company and run off with a massive paycheck but in japan they give them real motivation to keep the company go.

Wonder if they will pick up as the wiiu has potential that I don't want to see wasted so easily.

 

[Shoggoth2588]

I think American CEOs would cut their throats before their salaries to be honest. It seems like when a company flops over here they don't so much take pay cuts but rather shuffle people around (ie: fire-n-replace). It's really a shame that the Wii U isn't picking up the pace. I think we all knew it wasn't going to repeat the Wii's success but calling the thing Wii U instead of Wii 2 or Hell, ANYTHING else probably would have been a big help initially. I remember posting somewhere that a better name (though admittedly, still not a very good name) would have been Nintendo HDS (Home DS or High-Def Screens).

 

[Ichigo]

The Wii U is still 250 Euro on Amazon. Make it cheaper and maybe it will sell better.
If you aren´t a hardcore Nintendo Fanboy there is no reason to spend so much money on a console that was last gen when it came out and has no other games then Nintendo exclusives and shitty Ubisoft.

 

[Grabehn]

Why do I hear the "Nintendo is doomed, they should go 3rd party" crowd coming up?

Because EVERYTHING IS DYING DUDE! The Consoles are dying, the WiiU is dying, Nintendo is dying, PC GAMING IS DYING! (that one for over 10 years now, I think)... Oh yeah, ATARI IS DYING TOO!... I guess.

I don't know, people tend to act retarded just because.

 

[ron1n]

Nintendo should just dump home consoles and focus on their actual strength in making handhelds.

Could then make the same money off their popular franchises re-sold as third party titles for the other consoles.

I mean honestly, if the only reason anyone is buying your consoles is for Super Smash Bro's, Zelda, Mario games etc. then there's seriously no point to even bother making a console.

 

[Casual Shinji]

I almost feel sorry for Masahiro Sakurai and his team: Nintendo NEEDS Super Smash Bros. to come out asap to boost sales. They must almost literally be breathing down his neck at this point.

Is Super Smash Bros. really going to push sales though? See, I'd imagine all the hardcore Smash fans have already bought a Wii-U for the inevitable Smash entry. They're likely the same people who bought a Wii-U at launch for the next Mario and Zelda. This might be the reason why Super Mario 3D Land didn't push console sales; The people who wanted it (the life long fans) had already bought one in anticipation.

 

[CardinalPiggles]

If only every CEO went through that 'hardship' of cutting their 7-8 figure paycheck down a bit maybe the little guy at the bottom of the ladder wouldn't get absolutely screwed over all the time. Kudos Japan, I don't always understand your customs but you have my respect here.

 

[daveNYC]

It's a nice bit of theater, but I'd like to hear about what he'll be doing that will help Nintendo turn a profit.

 

[Caiphus]

Good for him. No idea if it was voluntary as a gesture towards shareholders and fans, or if it was in his contract to begin with, but it's good either way. As others have pointed out, better that Iwata has to hold off on that yacht purchase than a bunch of underlings getting the sack.

 

[FoolKiller]

Is Iwata the one to blame for the Wii U's failings? How would you think CEOs in U.S. companies would react if they had to take a pay cut whenever their companies underperformed?

Shitty... but this is fair. They tend to get bonuses for high performance.

Captcha is spying again: like a boss

 

[Mortuorum]

Is Iwata the one to blame for the Wii U's failings?

He sits in the big chair, so yeah, he's to blame. Either he provided poor leadership or failed to lead. Either way, that's on him.

How would you think CEOs in U.S. companies would react if they had to take a pay cut whenever their companies underperformed?

Considering a debacle like the Wii U would most likely get a U.S. CEO fired, a 50% pay cut doesn't seem too bad, especially given the disproportionate pay rewarded to Fortune 500 CEOs.

 

[Trishbot]

"How would you think CEOs in U.S. companies would react if they had to take a pay cut whenever their companies underperformed?"

Game developers would actually be forced to make higher quality products, treat their fans better, take responsibility for their own actions, not fire or close down talented studios because the annualized game they were forced to make in record time with non-stop crunch and overtime underperformed, add value to their games instead of nickle-and-diming them, and probably earn the goodwill of their players rather than disgruntled disdain, loathing, and constant criticism.

But I guess winning "Worst Company in America" for EA could've told you that as well.

 

[IceStar100]

Nobody can truly argue with a straight-face that the tech inside the Wii-U is comparable to Sony and Microsoft's offerings. I think dated technology in the machine is the true failing, since one of the main reasons the Wii-U isn't selling is because it has too few games. The reason for that, is because developers have stated that they don't want to develop for a console that is behind the times and making their latest games work on all 3 systems is almost impossible.

Sure you can blame Nintendo's marketing campaign and confusion over exactly what the console is, but without games, it'll never pick up sales. I know I'll probably be slammed for even suggesting this, but I really do think it's time for Nintendo to move away from the console market. Imagine Nintendo PC games and tell me how that would really be such a bad thing.

I can't help but feel that if they rush out another console to try and save face (and profits) and it misses the mark again, it could be the last nail in the coffin. Nobody wants to see that.

Actually, Japan isn't big on PC gaming like other asian countries. That's kinda the reason they have a console at all.

If Japan actually joined the club of PC gaming, Nintendo would just switch to that no problem. The PC gaming market would just explode with games, and pretty much gain such prominence that consoles might actually be in trouble.

2/3 of the big 3 are Japanese. If Japan goes PC gaming, Microsoft won't have the xbox and its entire product strategy would be deemed worthless. Xbox can't compete with both Sony and Nintendo exclusives on a single platform.

That's like a family sedan and a transformer being sold on a car lot for the same price. No one will go with a family sedan. PC would effectively make 90% of the market, and no one in their right mind would make games for xbox.

xbox is a trojan horse to peddle the rest of Microsoft's steaming turd pies hand made by Steve Ballmer. In fact, they wanted to use the xbox to push the under performing WIndows 8 on people. If xbox can't gain a foothold to peddle the other stuff, then Microsoft's long term investment over the last 20 years would be meaningless. Microsoft would be the laughing stock of the corporate world.

Japanese companies fail to see anything beyond Japan, which is a stark contrast to Western companies that want everyone and everything.

Although, this is a kick ass scenario that I want to have happen.

Or you'd see it crash and return to it's roots. Not a bad thing but a lot of people don't want to game on the PC. It's simple as that force them to and they will find other way to entertain themselves.