Business

Nintendo executives take pay cuts after profits tumble

  • 29 January 2014
  • From the section Business
Nintendo office with Super Mario figure
Image caption Nintendo has been facing strong competition from rival games console makers

Nintendo's top executives are taking temporary pay-cuts to atone for a dive in profits following disappointing sales of its Wii U games console.

President Satoru Iwata said he would take a 50% cut, and other executives will see reductions of 20%-30%.

Nintendo said net income fell to 10.2bn yen ($99m; £60m) for the April to December period, down from 14.55bn yen a year earlier.

The Japanese company is due to unveil a new business strategy on Thursday.

Nintendo said it sold 2.4 million Wii U units in the nine months from April to December, a slower pace than 3 million units in the same period of 2012.

The company behind the Donkey Kong and Super Mario brands has cut its annual forecast to end-March for Wii U sales from 9 million units to just 2.8 million.

Nintendo also cut the annual sales forecast for its hand-held 3DS video game devices to 13.5 million units from 18 million units.

The boom in smartphones and tablets, and also the popularity of the PlayStation 4 and Xbox One consoles, have eaten into Nintendo's sales.

Mr Iwata told a press conference in Japan that he would draw a reduced salary for five months. Asked if the pay cuts could extend beyond June, he said: "I will make a decision after looking at the management situation at that time."

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