Top Nintendo Executives Take Pay Cuts

As it released financial results for the nine-month period ending Dec. 31, and sales figures for the Wii U and 3DS (and associated software), Nintendo also announced that its key executives would take pay cuts from February to June of this year. Nintendo president Satoru Iwata announced that he will take a 50 percent pay cut in response to the company's continued financial problems, while Shigeru Miyamoto and Genyo Takeda will both take a 30 percent cut in pay. Seven other members of the company's board will also take a 20 percent pay cut. The changes will take effect in February and last until June, at which time the situation will be reviewed based on the company's ongoing progress.

The pay cuts come on the heels of Nintendo's release of financial results for the nine months ending December 31. The company also reported that it has shipped 5.86 million Wii U consoles and 29.37m units of disc-based Wii U software (including sales of digital copies and packed-in games). Wii U titles Super Mario 3D World, Wii Party U and Zelda: The Wind Waker HD have all now passed the one million sales mark. The company also said that it has shipped 42.7 million units of its 3DS hand-held, and 152.29 million 3DS software units Combined, Pokémon X and Y sold 11.6 million copies to date. Animal Crossing: New Leaf has sold 3.5 million worldwide to date and Zelda: A Link Between Worlds has sold 2.18 million since its launch in late November.

For the nine month period that ended on Dec. 31 of 2013, the company reported an operating loss of just a little over $15 million, on less than anticipated sales of the Wii U. The dismal sales of the Wii U forced the company to slash its yearly forecast earlier this month. Nintendo reported revenues of 499.1 billion yen ($4.8 billion), an 8.1 percent decline compared to the same period last year, and an operating profit of 21.7 billion yen ($210 million) in its third quarter.

Nintendo predicts it take a loss for the full fiscal year that ends in March.

Source: Eurogamer

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