Fri, Jul 29, 2011 | 13:36 BST
Iwata owns 3DS issues, halves his salary in the process
During a meeting with shareholders in Tokyo, Nintendo president Satoru Iwata took responsibility for 3DS sales, the price-cut , and also announced he is going to cut his own salary in half as part of a cut in fixed salaries.
Iwata told shareholders the 3DS price reduction will help with the end-of-year sales period at retail, as well as keep developers interested in the handheld after various game cancellations.
“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.
Iwata’s salary hits at around $2 million a year, while Shigeru Miyamoto’s hits at $1.2 million. Bonuses will also be reduced.
After the price cut and less-than-stellar quarterly results were announced yesterday, stock in Nintendo fell 21 percent, which caused former Nintendo president Hiroshi Yamauchi to loose an estimated ¥42 billion ($540 million).
Iwata also admitted Nintendo missed a price cut opportunity with GameCube, and this influenced the firm’s decision to cut the price of 3DS with the cash balance enabling the decision.
“We decided that if we take brave measures now, there’s high likelihood that a many players can enjoy the Nintendo 3DS in the future.”
The shareholders Q&A will be released at a later date, according to Nintendo.
Thanks, Kotaku.
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Posted in: 3DS, Jobs, Nintendo, Retail, Trade, hardware
Tags: 3ds price-cut, Satoru Iwata
15 comments
#1
Razor
29/07/11, 1:48 pm
Dear oh dear oh dear.
This is PS3 level of disaster going on right here.
#2
ManuOtaku
29/07/11, 1:54 pm
Well thats a big move that not other companies executives are willing to make, but i think this has to do with nintendo being and only videogame company, shame this is happening to them, because they are the only videogame company left, i mean as a main and only revenue, good luck guys i hope the 3DS and Wii U sales the amount need it to keep you in the business
#3
LOLshock94
29/07/11, 2:03 pm
surely this price cut will get alot of sales for xmas i think they just released it to early they would of made much more if they released it Q4
#4
pukem0n
29/07/11, 2:09 pm
well, that will hurt him. all he has left is 10% of the company in stocks, which are worth 4.6 billion $ right now
#5
ManuOtaku
29/07/11, 2:10 pm
You know regarding this news i read in some site that the manufature cost of the 3DS is 120$, therefore if this holds true nintendo is still making a profit.
Having said that i think nintendo Were Nintendo simply arrogant with the 3DS, thinking they could charge whatever they wanted and people would buy it? Something like Sony did with the PS3, and which brings one question if this happened to the PS3 why in the world you make the same mistake having a prior example of the exact same thing?, i can understand sony because it was the first time, but i cannot understand nintendo, is like the old saying fool me once is your fault, fool me twice is my fault
#6
KrazyKraut
29/07/11, 2:11 pm
Dear fucking Bank Managers:
You have to do it like Iwata.
#7
G1GAHURTZ
29/07/11, 2:13 pm
Seriously, the Japanese business world utterly humiliates the Western one when it comes to taking responsibility.
#8
ManuOtaku
29/07/11, 2:19 pm
#7 so true, sadly true, and also one key thing here, he is taking responsability directly for the 3DS situation and for that he has the most cutting percent, while other nintendo employees not that big, that saids a lot about him, you know the old saying success has too many parents, while failure is rather orphan
#9
Telepathic.Geometry
29/07/11, 2:47 pm
@7: That’s not true. It just looks that way…
#10
Yoshi
29/07/11, 3:31 pm
So after the success of the Wii, they didn’t save any spare change? :/
#11
Dannybuoy
29/07/11, 3:37 pm
“Look I’ve cut my salary, you have no reason to sack me now”
#12
marijnlems
29/07/11, 11:47 pm
Tch. What happened to cutting off a finger, Iwata? Wuss.
#13
freedoms_stain
30/07/11, 3:38 pm
@2, actually it’s not uncommon in Japan for execs to take the fall unlike in the West where they’d probably have gone on a sacking spree and INCREASED their own salaries, patting themselves on the back for their “efficiency savings” with big fat bonuses.
#14
RedBirdiii
30/07/11, 11:28 pm
Wow!! All of this happened because of a price reduction!
They should release that Wii U soon.. I think.
#15
Phoenixblight
31/07/11, 1:10 am
@14
The price reduction is because of the stock hit not the other way around and no the Wii U will not be coming out sooner if you have learned one thing from nintendo they don’t push out half baked products like Microsoft