Nintendo CEO slashes salary in half to apologise for Wii U losses

Nintendo announces operating loss of roughly $15 million for the nine months ending December 31.

Nintendo CEO Satoru Iwata will slash his pay in half for the next five months, following disappointing financial results for the Wii U and 3DS maker.

Other members of the Nintendo board will take a pay cut ranging between 20 and 30 percent of their salary.

The company announced last week that it was reducing its sales expectations for the Wii U by two thirds, now expecting to shift 2.8 million Wii U consoles for the 12-month period ending March 2014.

Nintendo originally expected to shift 9 million Wii U's in the same period.

Nintendo released its third quarter financial results overnight, announcing an operating loss of roughly $15 million for the nine months ending December 31, 2013.

The company also announced revenue of 499.1 billion yen for the period, a drop of 8.1 percent compared to last year.

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Discussion

698 comments
permerup
permerup

The title for this article is ace, though slightly judgemental when you think about it.

Wej_accept_it
Wej_accept_it

Really hope big time execs at MS, Sony and EA are aware of this

Fursnake
Fursnake

Well it was either that or seppuku so I think he made the right decision.

matman01
matman01

I think its refreshing when the CEO of a major company takes responsibility for poor performance, however notionally. The banks could learn something from this.

Edymnion
Edymnion

Thats odd, all those movies have taught me that when a Japanese man of rank and authority fails so miserably that he brings shame upon himself and his household that he's supposed to cut something other than his salary...

FighterforJC
FighterforJC

Guys you are all blowing this out of proportion!!!!  The Wii U is in GREAT SHAPE!  IT IS DOMINATING WHAT'S YOUR PROBLEM???????????!!!!!!!!!!!!!!!!!   jk.

smokeyrastasa
smokeyrastasa

How much does he make annually anyway? I highly doubt its going to make a dent in his bank account for the next five years...or am I missing something guys?

so_hai
so_hai

This is damage control for Iwata in a personal sense - he's hoping he's not being removed and so has made a preliminary concession to halt any movement...

jeremylst1
jeremylst1

Don't tell this to a bankster, he might have a heart attack. And make us pay interest for it.

Redsyrup
Redsyrup

Wake me when the Nintendo phone launches with a decent D-Pad and Shoulder Buttons.

hadlee73
hadlee73

Iwata already gets paid less than some board members (like Miyamoto) too. While many of the board members are likely to be as responsible for Nintendo's earning problems lately as Iwata is, this is the risk and responsibility you take on when you take a CEO position.

Raeldor
Raeldor

I think the lesson to learn here is don't create a system with a novelty controller without 3rd party support or a strong first party lineup.

JDWolfie
JDWolfie

They sold less consoles in over a year than Microsoft and Sony did in just a few months. That's pretty amazing.

Swedish_Chef
Swedish_Chef

guess falling on your sword isn't a thing anymore, eh?

SpicaAntares
SpicaAntares

I'm worried for him. Shouldn't we raise some charity for him, send him boxes of used clothes, cans of beans, boxes of cheese macaroni or something?

You guys may not realize it but most CEO barely make ends meet nowadays. If you start cutting millions on top of that... payments on manors, yachts, beautiful apartments in a few big cities, luxury cars, arrives faster than one expects and you end up, at the end of the month, looking dum if you can't cover them with your bank accounts, both there and in fiscal paradises.

fluffy_puppy666
fluffy_puppy666

He reminds me of Sad Hoshi. I'm feeling bad for him, not that he didn't deserve it. He was just trying his best, poor little guy.

GalvatronType_R
GalvatronType_R

Iwata took a pay cut due to Nintendo's disappointing sales, good on him.


JP Morgan was fined $20B for trading improprieties.  What does their board do?  They almost double their CEO's pay from $11.5M to $20M.


What a difference. BEAM ME UP SCOTTY!

tranceology3
tranceology3

One problem here is there is to much technology out there that can play games...and play them well. I mean many phones can play games with graphics that are great and are fun...and are FREE or are very cheap. Nintendo has the name, and that is about it. Now If you took some person living under a rock for the past 50 years and introduced him to video games, he would care less about Nintendo, because its not that exciting! Nintendo's market is for kids, but to many kids want mature stuff...which Xbox and PS4 have. I wonder which age it is when kids shift from kiddy stuff to mature stuff....10..12? So Nintendo's real market is at best 6-10 years of age? That's a small gap. Now the  success of the original wii was something revolutionary and sparked a fad, and was affordable....but the Wii-U (which is their first mistake, the name) has nothing NEW that people care for. And the lack of games....I mean cmon! Make some games!!! 

deadpen
deadpen

5 months LMFAO, what a hit he will take from that. I worked for a company (Dana corp) that went bankrupt and moved my factory to mexico. This was mostly because they hired the loser that almost bankrupted Chevy/gmc. He took a 50% cut in his salary for as long as he stayed with the company, which put him around $80 a year BUT he still got his $5 million bonus that year and was offered $13 million if he stayed with the company until they got out of bankruptcy. So like that, this is one of those "SO FUCKING WHAT!" moments.

spikepigeo
spikepigeo

Humility and integrity. Rare things at that level of business. Props, Ninty.

Someguy1212
Someguy1212

Nintendo is the only gaming company that actually takes responsibility for its actions. You wont see EA or Microsoft executives do this

Joedgabe
Joedgabe

Soo... I was kinda expecting to see how much he's earning. 

GreenvaleXYZ
GreenvaleXYZ

Don't apologize, and don't worry.  You're competing against two giant hot air balloons, Nintendo--they lack your heart and drift wherever the wind forces them.  Get quicker at releasing cool games and make everyone understand why the gamepad is good for gaming.  Make your own trailer for a Shenmue 3 and present it to Sega.  Finish second-gamepad support and show Firaxis how they could make an XCOM game with a Wiimote and nunchuk controlling base command on the TV and two gamepads each controlling individual squads.  Convince Io Interactive that Agent 47 can kill and interact with the environment in new ways with the Wii U.  Be bold.  Be yourself, Nintendo, and everything will be okay.  Because unlike those PUSSSSAAYYYYYZ at Sony and Microsoft, you do your own thing.

No offense to Xbox One and PS4 owners, I'm not being THAT serious.  Your systems are powerful, and your good games will come soon.  Just want to rile up my fellow Nintendo homies who need cheering up in these difficult times!

andrew_ribbons
andrew_ribbons

Well that's more integrity than most CEOs i'll give him that.  Most of the time they'd just sell off some assets, cut employees pay, or simply give up on their failing areas leaving customers royally screwed.

Jag-T1000
Jag-T1000

Nintendo will be fine. They just need to lower their expectations. With Microsoft and Sony around, Nintendo isn't the powerhouse it used to be. They'll keep the Wii-U and 3DS alive with their 1st party titles.


GOGOHeadray
GOGOHeadray

Nice gesture; but that is all this is. What needs to happen is Iwata needs to step down and someone is more more forward thinking needs to take the reins of the company. Nintendo's problems stem from the fact that they are stuck in neutral with ideas when it comes to their home consoles and no amount of salary cuts is going to help that/

Patohua1
Patohua1

Nintendo is going to have several ups and down the next couple years, but I know with 100% certainty that they will drop out of the console race in my lifetime and stick to handhelds and games, it's inevitable. I'm not saying the WiiU is a shit console or anything or there aren't great Nintendo games, but let's get real, this isn't the 90's anymore and their business model doesn't work. They have refused to adapt and have screwed with their fan-base too much by using them as Guinea pigs and it will be their ultimate downfall in the console world. One day I will say to my friends, "Hey, remember when Nintendo made consoles?" and the younger generation will just stare at me blankly.

so_hai
so_hai

@Redsyrup We might as well euthanize you now. It ain't happenin'.

so_hai
so_hai

@hadlee73 I'm not convinced that anyone other than Iwata is responsible. After all, the buck stops with him.

Slagar
Slagar

@Swedish_ChefFalling on your sword, taking a pay cut, same thing... Japan changing with the times <3

Slagar
Slagar

@SpicaAntaresA wise man once said, "Only beggars dream of being emperors" :)

(no joking)

astrallite
astrallite

@GalvatronType_RThat's because the fines are just government taking their cut. Fed is giving JP Morgan trillions at 0% interest, they know they are going to gamble do shady stuff with the money. They just want to skim some of that grey market action and line up their own pockets. Crony capitalism at its best.

GalvatronType_R
GalvatronType_R

One more note: the JP Morgan board defended Jamie Dimon's pay hike by stating that he was effective in negotiating the terms of the fines and legal settlement.  


They ignored the fact that the violations occurred under his watch and there would need to be fines or a settlement if he and JPM leadership would have exercised more institutional control.


Where do I sign up as a CEO with no need to take personal responsibility, have plausible deniability for everything, and yet get my pay doubled?

SpicaAntares
SpicaAntares

@GalvatronType_R

I remember seeing something about a bakery bought back by the employees. That cooperative hired a manager for day to day operations. This guy received the same salary as anyone else and was happy and satisfied with that. End result was all employees shared the same salary and everyone ended up getting around $60,000 or more as annual salary.

I could comment on that but I leave that on every one to reflect on that by themselves. Let's just say there are alternative to private ownership.

Altazen
Altazen

@tranceology3"I mean many phones can play games with graphics that are great and are fun...and are FREE or are very cheap" /vomit

so_hai
so_hai

@Someguy1212 Microsoft fired the 'deal with it guy' pretty quickly. (They say he stepped down, but that's a euphemism.)

horizonwriter
horizonwriter

@GreenvaleXYZ Wow. All that plus "Nintendo homies"... You may have made more of them roll their eyes in embarrassment than rally behind you but I gotta admire your enthusiasm.

dreamreaver721
dreamreaver721

@GOGOHeadray Unfortunately, I agree. I've been around a long time and gaming for just as long, and I think Nintendo is stuck in its stubborn mentality of kiddy games that aren't really fresh anymore and aren't growing up along with the old-school gamers. It's not that gamers are the most mature bunch out there - myself included - but we are demanding a different kind of game these days. I mean, look at what's going on with the Indie movement (a movement, incidentally, that I don't really understand because most of the Indie games are crap...perhaps I'm the only one bold enough to say it?). Gaming has changed and continues to change. Nintendo still has no big online platform, they try too many risky things with hardware that aren't working anymore because they're just gimmicks, and the third-party support continues to flee from Nintendo! I remember this from the N64 and GameCube days! How can Nintendo continue to make these same foibles over and over again? Arrogance and stubbornness if you ask me.


I think you're right. Salary cuts aren't going to sell more Wii U consoles. I don't care about that if there are no games to play for my dusty Wii U. I'm thinking of trading it in to salvage some modicum of value from it. It's sad really. :(

horizonwriter
horizonwriter

@so_hai @hadlee73 Then you have no idea how big of a machine a corporation can be and how impossible it is for one person to take responsibility for it all.

so_hai
so_hai

@horizonwriter @so_hai @hadlee73 I think I understand them to some degree. For example, when it's going well, CEO's are lauded as saviours (Steve Jobs), when it's going bad they should be held to the same standard. Either that, or you're going to have to give everybody under Apple equal credit to Jobs, for example. Would you do that?

hadlee73
hadlee73

@horizonwriter@so_hai@hadlee73While I also agree with the machine/corporation comment (because I work in one and know how board decisions work), "the buck stops with him" is also quite true. Like I said above, its the risk associated with being promoted to CEO of any company. If you do well, you're golden, if not, well lets just say Iwata is actually lucky to still have a job.