Nintendo executives take pay cuts after profits tumble

  • 29 January 2014
  • From the section Business
Nintendo office with Super Mario figure Image copyright AP
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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