The lights are on
The 3DS has grabbed headlines recently, though not in the way the Nintendo would have wanted. The troubled device will be getting a price cut in August, dropping from $249.99 to $169.99. The move means Nintendo will be losing money on the hardware, which in turn effects the company's earnings forecast. Today, company president Satoru Iwata spoke to shareholders in Tokyo, accepting responsibility for the 3DS and its recent troubles. In addition, Iwata said that he and other executives will be taking significant pay cuts.
For Iwata, that translates to a 50 percent cut from his annual salary of approximately $2 million. Directors close to the project will see a 30 percent pay cut, and other executives will get their pay reduced by 20 percent.
"We decided that if we take brave measures now," Iwata wrote in a letter, "there's high likelihood that a many players can enjoy the Nintendo 3DS in the future."
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Wow. 50% is no big deal. I really feel bad for Nintendo.
I respect Iwata and the other execs for taking paycuts instead of possibly letting regular employees get laid off because of the 3DS's mediocre sales. Hopefully 3DS sales will start to pick up soon with the price cut and all of the great games coming up this fall/winter
I wish other top people would do this (looking at you, govt!). It is nice to actually see someone with power also be responsible. I mean, I'm sure he'll be doing just fine with 50 % of whatever he's making, but its the principle of the thing.
I really hope they can turn this around. Even though I rarely play my wii compared to Xbox or PC, Nintendo is and will always be my favorite game company. I'll definitely be purchasing a 3DS soon.
Bold move indeed. If only actions like this were common place in all industries. I hope this system eventually does succeed because I think it's pretty neat, and I just can't wait for the ability to play Metal Gear Solid 3 in 3-D.
I think I'll go out and get me a 3DS then. I can't help but respect a move like that considering most American companies and institutions (the university where I go to for example) would much rather let people go or cut their staff's salaries down to abysmal levels before EVER even considering executive salaries.