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Nintendo president claims responsibility for 3DS sales, takes 50% pay cut

Nintendo boss Satoru Iwata has pledged to take a fifty percent salary cut in atonement for the 3DS' less-than-stellar retail performance. Following yesterday's news that Nintendo would be hacking the cost of its new handheld by close to 33% across the globe come August, Iwata met with investors to explain the rash decision, take responsibility for the system's sales, and reveal how he and other Big N bigwigs are sacrificing their own coin to keep shareholders happy.

"For cuts in fixed salaries, I'm taking a fifty percent cut, other representative directors are taking a 30 percent cut, and other execs are taking a 20 percent cut," said Iwata, who reportedly earns an annual wage akin to US$2 million.

Iwata later told investors he believes the 3DS price cut - down to $169.99 from $249.99 in the US effective August 12th - will put the handheld back on the map, and that Nintendo would have done the same with the Game Cube in retrospect. Moreover, he admitted the lowered unit price will initially make the system non-profitable, but assured attendees that productions costs were likely to go down once the handheld's sales start picking up.

Today's meeting follows a 24-hour string of bad news for Nintendo. Shortly after announcing the 3DS' reduced price, Nintendo's stock dropped 12.2%. Naturally, this led to some concern amongst shareholders, including the company's former president, Hiroshi Yamauchi’s, who was reported to have lost the equivalent of US$300 million in stock value overnight. Considering he's estimated to be worth $4.6 billion, we're sure he'll weather the storm. Then again, he could always just buy 27,218,934 3DSs and solve everyone's problem (and no, I didn't do well in economics back in high school, why do you ask?).

Jul 29, 2011

Source: David Gibson Twitter via KotakuBloomberg



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28 comments

  • Metroidhunter32 - July 31, 2011 3:12 p.m.

    I must aplaud him, it takes serious nerve to slash your own pay rather then cutting pay from employees.
  • crknnuts - July 31, 2011 9:08 a.m.

    They just really need to get NEW games out there for the 3DS and slow down with the rehashing of old titles.
  • Yeager1122 - July 30, 2011 7:05 p.m.

    Wow wasnt expecting that.
  • Scammeleon - July 30, 2011 6:21 p.m.

    Am I right int hinking then this is the first time Nintendo have ever opted to make a loss on each unit? It's always been what's kept them safe in the marker, so this really is odd behaviour for them...
  • mothbanquet - July 30, 2011 12:20 p.m.

    @Redeater - That's what we said when the Gamecube went downhill If history has taught us one thing, it's never underestimate Nintendo.
  • Jacko415 - July 30, 2011 5 a.m.

    Kotick just had a Stroke from seeing such greedless nobility.
  • Darth_Griffin - July 30, 2011 4:01 a.m.

    it`s good to see a corporate exec taking fiscal responsibility for their failure. If only more CEOs would do that same......
  • UsernameLoser - July 30, 2011 1:15 a.m.

    It's not Iwata's fault, the fault should go to the goddamn marketing guys. Really, does anyone give a shit if some old guy likes playing it?
  • Defguru7777 - July 30, 2011 12:40 a.m.

    Good to see a little integrity on Nintendo's part. Seriously guys, one string of bad news isn't going to doom Nintendo right away. There's no real indication that they'll go the way of Sega.
  • CommandantOreo - July 29, 2011 11:50 p.m.

    "and reveal how he and other Big N bigwigs are sacrificing their own coin to keep shareholders happy." See, that is the problem right there. ALl people do nowadays is worry about shareholders. Maybe if Nintendo kept trying to please gamers, they would be drowning in cash which would trickle down to shareholders, and everybody would win. Shortsightedness FTL.
  • EwoksTasteLikeChicken - July 29, 2011 10:45 p.m.

    I'd love to see Bobby Kotick do this. Sadly, that'll never happen.
  • TheKey - July 29, 2011 9:45 p.m.

    @Foodperson Yeah, I mean, he's still getting a million dollars, he's barely in a bad situation. I'm proud to see that Nintendo is taking responsibility for the situation, instead of running around like a crowd of headless chickens. Also, I like how everyone acts like their first financial loss in a decade will ruin them forever,and go the way of Sega.
  • SouthTippBass - July 29, 2011 9:42 p.m.

    A lot of respect for that guy, 50%? Amazing that he would do that. Its a shame, the 3DS is a fantastic system and I love it, I really hope it bounces back!
  • Foodperson - July 29, 2011 9:20 p.m.

    50% salary cut!? Well, it looks like Iwata-san has to give up eating his filet mignon w/ rice pilaf, sell his luxury mansion and (insert Japanese brand) sports car, and live in a (crappy) apartment for the rest of his life. Trololol? No, I think it's sad. but I admire him for making up for the 3DS sales fiasco. Long live Nintendo.
  • GoBlue811 - July 29, 2011 8:49 p.m.

    OMG upper management taking responsibility for their mistakes? What a concept!
  • mackshizzle - July 29, 2011 8:37 p.m.

    The equivalent to senpaku.
  • reuben0110 - July 29, 2011 8:22 p.m.

    It's nintendo you guys. They always pull through.
  • Ilyere - July 29, 2011 8:20 p.m.

    That's a pretty huge pay cut. Lots of respect for this decision, and I hope that Nintendo will recover from this year's events.
  • reson8er - July 29, 2011 8:13 p.m.

    While it's true that it seems taking a pay cut is noble, lets not romanticize the situation. He's taking the pay cut because if it were any other company heads would roll. I see this as his way of trying to right the ship with his current staff. As a few posts above seem to think Nintendo is a private company, let me remind you that they in fact are most certainly not. They have shareholders that they are accountable to and this is exactly who Iwata was speaking to when he made the announcement. These moves are very desperate, for a company who was so flush with cash (and probably still are) they seem curiously devoid of ideas. Time will tell, and I'm fairly confident they will weather the storm, but can't say we didn't see the writing on the wall.
  • Cyberninja - July 29, 2011 8:07 p.m.

    i bet a year from now everyone who doubted nintendo will feel rediculous and will own both a wiiu and 3ds because you cant say a system looks like the next dreamcast before it comes out. because in all honestly mircosoft seems like its more likely to drop out the console race because once they no longer have GoW halo will be the only xbox only game worth playing since kinect has only 2 games worth playing. while 3ds has more good games on the way.

Showing 1-20 of 28 comments

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