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Nintendo President Takes Pay Cut In Wake Of 3DS' Troubles

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."

 

[Via Kotaku]

Email the author Jeff Cork, or follow on Twitter, Google+, Facebook, and Game Informer.

Comments
  • Sheesh... they must have had quite a lot of confidence (or just made some outlandish forecasts) in this product doing very well very quickly for things to come to this just months after launch.
  • Is this the modern day version of seppuku?
  • That is actually a big integrity move. Hats off to him and the other executives who are going to do that. Well done.
  • Yikes. Do what you have to do to sell, Nintendo. I can't think of another company willing to go through this.
  • And here I was hoping that politicians would take a pay cut, but oh well I will hopefully get the 3DS before Revelations comes out. Thanks Nintendo.
  • 50% paycut? Wow, that's a pretty impressive thing to do.
  • 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.

  • Now only if the US government can follow in Iwata's foot steps.
  • In these modern times when personal responsibility is all but dead, I tip my hat to Mr. Iwata. You are a class act, sir.
  • 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.

  • Mod
    Kudos to them for taking a pay cut rather than cutting their work force.
  • wow. I've gotta hand it to them, it says a lot for them as a company to cut their executives own salaries to make up for the loss. If there's one thing Nintendo is good at, it's showing integrity.
  • This is actually encouraging me to buy a 3DS....Wait a minute...Well played, Mr. Iwata. :)

    In all honesty, I commend the willingness of Nintendo executives to do this. It's good to see that there's some innocence and humility left in the business world.
  • 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.

  • For 250, there is no way I was gonna buy one when I already own a ds. But for 170 I could see myself taking the leap if there is gonna be continued support.
  • Wow
  • yeah it would be nice if some other company execs or government officials would do the same, but still iwata after the cut is making a million a year i hardly think he'll have any problems.
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