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Iwata and Miyamoto will be taking pay cuts following poor performance

iwata-and-miyamoto

Due to the Q3 financial report for Nintendo, president Satoru Iwata has revealed that he will be taking a voluntary 50% pay cut for the next five months. During this announcement, Iwata revealed that Shigeru Miyamoto will also be taking a 30% pay cut, while other board directors will have their salaries cut by 20%.

This announcement came after the reveal of the Q3 financial report, which saw Nintendo post a net operating income of 1,578 million yen, but projects a future operating loss of up to 35 billion yen for the final financial quarter.

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  • Jeffrey Debris

    Although I don’t like this news, I respect these men for their devotion to their company. You don’t see this happening in the western market.

    • http://about.me/overlordror Ashley King

      Yes, this is almost something exclusively done in the Japanese executive culture. Pay cuts for executives in America aren’t a thing. Look at how HP had a revolving door for CEOs and each one that helped ruin the company further took a golden parachute payment instead of having any financial impact for their bad decisions.

      • Jeffrey Debris

        Same thing here in the Netherlands. You only see lay-offs, never cuts in CEOs salaries and/or bonuses. It’s mental…

    • Luciano

      Just to remember,this was one of the last step a few years ago they’ve done before the 3DS become the huge monster in portable devices.
      I hope this,new games and massive marketing change the Wii U future in a near future.

    • Michael Dierlam

      It happens all the time actually. Last year I remember the CEO from JC Penny and Sears both taking pay cuts due to poor financial performance. A couple years ago Netflix had a bad quarter and the CEO took a big paycut (and then got a raise once things turned around).

    • gamingpalooza

      western market will drain their company of funds until there is no company left.

      • https://www.facebook.com/BlueLightningTechnicalServices Bob Wilkerson

        and then blame their customers and expect a government bailout

    • tronic307

      Looks like Nintendo’s in Iwata trouble.

  • abe

    This is how an company should act when it makes mistakes. Take note Sony, apple and microsoft

  • Shota

    Shigeru Miyamoto and directors also five months pay cuts?

  • http://about.me/overlordror Ashley King

    Overall I’m finally happy to see Iwata acknowledging that the Wii U isn’t doing as well as he hoped. His forecast for the 2013 year was way off given the software support the Wii U got. Now hopefully they can get on the road to fixing things.

    • darkcreap

      I think it is very positive he has acknowledged that. Many bussinessmen would simply stubbornly negate the reality, so Iwata’s acceptance is a big step. What worries me now is if he will take the appropiate measures and in the quantity they are needed. Nintendo is already doing some colalborations with third parties like Tecmo Koei and Shin’en, but I wonder how many others they have.

    • https://twitter.com/Zorpix_Fang Zorpix

      I personally think we have another gamecube on our hands. Didn’t necessarily sell the greatest, but its loved by most who own it and will be remembered fondly.

      • http://ejercitogeek.net/ Mercurio2054

        The difference is that this days we have a more globalized internet, so they have the opportunity to make the water run when good games come to it (Wii U).
        i Don’t know if i express very well what i want to say.

        • https://twitter.com/Zorpix_Fang Zorpix

          I… sorta get it?

          • http://ejercitogeek.net/ Mercurio2054

            sorry

      • Denvy

        In theory I agree. But I don’t think it will even sell as many as the Cube.

        • https://twitter.com/Zorpix_Fang Zorpix

          I think it’ll at least get similar numbers

          • Denvy

            I’m not so hopeful. I’d be surprised frankly, but pleasantly surprised at that.

          • https://twitter.com/Zorpix_Fang Zorpix

            Guess we’ll just hafta wait and see ^w^ Either way, I’m happy with my U

          • Denvy

            I’m happy with my U as well, as I was with my Cube, but I certainly hoped a bit more out of it.

      • Rinslowe

        And had some killer apps not found anywhere else – not all first party titles either. And managed – like I suspect the Wii U to do – to be a profitable system for Nintendo.

        • https://twitter.com/Zorpix_Fang Zorpix

          Yeah. If nothing else they’ll break even on it and try again in a few years. In the meantime, I have a damn fun system to play

          • Rinslowe

            I think they’ll more than break even on it. Nothing profits in the first 12 months, ever. Except possibly the Wii. But all things considered I think even Wii would have taken more than 12 months to recuperate all investments including Marketing/ Advertising and especially R&D.
            Wii U seems to be on a pretty shallow operating loss so that’s possible to turn around just as quick. Then on to earning it’s keep.
            :)
            I think it’ll be a profitable system for Nintendo overall come the end of this generation.

          • https://twitter.com/Zorpix_Fang Zorpix

            Good points. I agree :3

  • CEObrainz

    I wonder how much is that pay-cut worth?

    • Yousif Alromaithi

      Millions I bet they will use this money to make games and speed up the process for development. Such as remake games and releasing VC classics on Wii U and 3DS.

      • https://twitter.com/Zorpix_Fang Zorpix

        Id love it if some of it went into predicting release dates. Peopke arent gonna buy a console for a game thats coming out “whenever”

    • lonewolf

      It depends how many directors thry have in the board of directors there might be 20 directors who knows.

  • verymetal

    Don’t go public with taking pay cuts, how about going public with showing future software titles and that their seriously committed to making the Wii U be the best it can possibly be?

    • https://www.facebook.com/BlueLightningTechnicalServices Bob Wilkerson

      That meeting is tomorrow and I am sure that will be discussed then.

  • Rukiafan Rukiachan

    Mad respect for these men. well japan people have honor .

    • Shota

      yup. i’ve been in japan few years ago. Most nicest people on earth.

  • GregoryTheRainMaker

    What I care about is are they actually going to make real changes? The pay cuts are a good sentiment, but it’s time for action.

  • Lusunup

    How honorable instead of laying off employees they take a pay cut ;)

    • Rinslowe

      Honestly not to be a prick on this one. I totally agree. But in all fairness, these two guys can afford it, more so than any other employee also…
      :)

  • starwars360

    Nintendo, Sony and EA will be fine. They have plenty money!! They having bad week. But they always comeback and still richer publishers in the world!!!

    • DragonSilths

      Sony? They have had a bad 10 years. They are hurting far worse then Nintendo. Don’t ignore the facts. As for EA, unfortunately I have to agree with you. They SHOULD die off but they wont, to much money. It could take 50 years to get rid of them.

      • Diana of Themyscira

        Outselling the Wii U’s lifetime sales two months after launch doesn’t seem to be hurting Sony.

        • DragonSilths

          Just cause the PS4 is doing fine doesn’t fix the past 10 years of Sony’s situation and Sony is NOT JUST a gaming company Sony CANNOT survive on just the PS4.

  • starwars360

    Nintendo, Sony and EA ARE RICHER PUBLISHERS IN THE WORLD!!!
    BAD WEEK WILL BE GONE UNTIL THEY WILL HAVE MANY GOODIE INFORMATIONS AND ANNOUCEMENTS!!!
    Hahahahahahahahahahahahahahahahaha wooohoooooooo!!!!

    • NkoSekirei

      sony is not that rich dude their having some financial issues and Ea their just plain greedy

  • starwars360

    I am so happy because publishers not worry about losing money and business problems. They will always climbs up again. 8)

  • starwars360

    I go back Miiverse in Wii U and play PS4 game as well talks my friends. Goodbye gamers. I shall be here later whenever better article about epic games!!!

    • Kevin James McAllister

      What is your primary language?

      • Wighead

        Badglish…

  • Ibi Salmon

    Didn’t something like this happen with the 3DS in it’s first year?

  • Sdudyoy

    Most company’s will force everyone other than themselves into pay cuts, Iwata really does care for His employes.

    • Kevin James McAllister

      My understanding is that this is a very common thing for Japanese companies. They take the loss as a reflection of their own performance and act accordingly in regards to pay cuts. American companies could learn from this model.

  • Gameonfool

    It’s starting the death of the dreamcast 2, Nintendo is DOOMED. At least ill be able to play mario touch jump on my phone soon Ha Ha Ha

    EDIT: if you took this comment seriously then Ha Ha Ha
    It was to mock all the dumb people who would rather ninty go 3rd party instead of buying them on the intended platform in its finest quality.

    • Aleksander

      lol you dont even have the money to own a phone or any console :)

      • Gameonfool

        lol you don’t have the money to buy a sense of humour

        • Aleksander

          you cant buy humour its something you have or not have :)

          • Gameonfool

            No well i, And I can feel it oozing right out of you

  • Psytrix

    Iwata needs to go. The guy is completely out of touch and failing at an epic
    degree.

    • Yousif Alromaithi

      Man you are the failure Mr Iwata is the best CEO in the history of Nintendo mind me but what Iwata did more than what Yamuachi did back on the day.

      • Michael Ocampo

        They’re both AWESOME!! ^_^

    • https://www.facebook.com/BlueLightningTechnicalServices Bob Wilkerson

      Clearly you do not see all the things he has succeeded at. His accomplishments far outweigh his failures. I guess that is why Nintendo has remained one of the few profitable gaming companies and game publishes over the last decade or two despite a few bumps in the road.

      • Psytrix

        This is not about looking at the past, this is about looking to the future. People need to see past their fanboy attitudes and emotitions, the Wii U is in trouble and Mr Iwata has done very little to address the issue. Nintendo fans can down vote my comment all they like, unfortunately – the truth hurts. Why do I care? Because I bought a Wii U and don’t want to see it crash and burn.

    • Mario

      And by go, you mean giving him a new position in the company. Right?

    • NkoSekirei

      you know whos failing at an epic degree EA

  • Rick Valenta

    Why Miyamoto? He’s not an executive is he? Iwata needs to go, any western company would have fired him ages ago.

    • https://www.facebook.com/BlueLightningTechnicalServices Bob Wilkerson

      Yep right after they fired a load of employees and gave themselves bonuses including the huge bonus for being fired. Then keep doing that until the company is ran into the ground and they are reaching out to the government for a monetary bailout.

      • Rick Valenta

        Seems to work for Apple ;)

        • https://twitter.com/Zorpix_Fang Zorpix

          “more money any way possible” -Apple

          • Rick Valenta

            In all seriousness as an MBA student and businessperson I can tell you that it is no longer good for the company to have Iwata around. He had plenty of good years and time to do the Wii U right and made some seriously bad calls, i.e., marketing, branding, design. The only thing Nintendo is getting right is innovation, which is important but doesn’t seal the deal. It’s time for someone fresh to take the helm at the big N.

          • https://www.facebook.com/BlueLightningTechnicalServices Bob Wilkerson

            OK Mr MBA and Business person I think we will let Nintendo decide what is best for their future. After all they have not been in business for 125 years because they are stupid.

          • Rick Valenta

            Bob lots of companies that were hot for ages flame out real fast. Ever heard of Kodak, Compaq, Saab, TWA, Pan-Am, American Motors, Woolworth? I want Nintendo to succeed, so it pains me to see them make bad choices. That is all.

          • https://www.facebook.com/BlueLightningTechnicalServices Bob Wilkerson

            Fair enough. It’s just hard to take people seriously when the first thing they say is to fire the CEO as it is the only solution. Despite the recent (last couple years or so) issues with Nintendo they have had more successes than failures if you look at terms of profits and quality and not just sales numbers so I see this as a step to remedy the situation. Most of those other companies you listed were continuously run into the ground with no one really stepping up to take the blame and no plan to fix the problem other than to fire the people in charge.

          • Rick Valenta

            Agreed. And there are plenty of big companies with a long history right now that are being run into the ground slowly due to poor leadership and marketplace factors (JCPenny, Best Buy, Barnes & Noble, Mitsubishi, Dell, Motorola, Sears) I just don’t want to see Nintendo be among them. I think your point is valid that Japanese business culture is different and slower to react to markets than NA/EU companies are. Maybe it will be a good thing if Iwata has learned from his mistakes and has the chance to set things straight. I just hope he does it soon.

          • https://www.facebook.com/BlueLightningTechnicalServices Bob Wilkerson

            Well I am basing my opinion on his many successes over the years and the fact he is always the first to take responsibility and never once have I heard him blame competitors, the customers, or simply the economy/industry for the problems. He has always said it is Nintendo’s responsibility to make sure they are successful and to learn and adapt as the industry changes. To me this is one of these changes and while the chips are down now I say he deserves a chance to try and bring them back up

          • Rick Valenta

            My final take is that from a business standpoint, they didn’t differentiate the product enough from their previous product, and they didn’t market it aggressively enough. These two missteps were major enough, in today’s winner take all marketplace, for a leadership change. Each console generation may be a companies last, and there is no room for error. 3 things could have prevented this entire debacle.
            1. A different case design for the Wii U
            2. A different name for the console, even “Super Wii” would have been better. Wii U or Wii HD is just too close and confusing (for some people lol)
            3. A much more aggressive marketing campaign. Worth it’s weight in gold IMO.
            Everything else about the Wii U I love. The power is good, as well as the gamepad and backwards compatibility, the use of Wii motes, and all the other features we’ve come to know and love over this past year. In the long run Nintendo will be okay, if the Wii U is another GameCube it’s fine (I still love and play mine all the time.) its just….lesson’s learned the hard way that should have been self evident.

          • https://www.facebook.com/BlueLightningTechnicalServices Bob Wilkerson

            I agree with all of that. To me the poor marketing and information to the consumers was a huge reason the Wii U has not been as successful as Nintendo would have hoped. The other big mistake they made was NOT having one of their own AAA titles available for the system at launch and then possibly another AAA title 7-10 months later.

            I firmly believe one of the reasons the Wii took off so well is because they had a AAA title in The Legend of Zelda: Twilight Princess at launch and then word of the gamers and a great marketing campaign kept the system selling. All of this was a fail with the Wii U. The console has plenty of power and value to most gamers but Nintendo allowed the hate of the internet and the misinformed bloggers take over without stepping up to show the world all of that was wrong.

          • Mario

            Seriously! Just give him a new job in the company!

          • https://twitter.com/Zorpix_Fang Zorpix

            I wont argue with that.

  • realist

    iwata personally should do harakiri

    • Rick Valenta

      With wii-mote with sword attachment. lol

    • NkoSekirei

      maybe u should throw ur self off a cliff for that stupid comment u just made

      • readypembroke

        I would spend $5 to watch that happen. I would even bring the popcorn and mountain dew!

      • realist

        give me a logical explanation to my comment. I am a realist. are failures

    • FutureFox

      Isn’t that how all harakiri’s are done?

  • Yousif Alromaithi

    I am sorry for both Miyamotto and Iwata these guys are really good for Nintendo. But anyways this isn’t the first time Nintendo CEO got a cut back when 3DS was a failure Iwata received a cut. This is in turn made the 3DS the undisputed handheld on the market. I hope this cut makes the Wii U achieve something similar or half what the 3DS is doing.

  • Xero Azure

    Love these honorable guys, The Wii U is a great piece of machinery they shouldn’t need to take a price cut.

  • Skelterz

    i know this is completely off topic but does anyone know how to sort out nat type for the wii u like could anyone run me through the exact way to sort it either by port fowarding or any other way its fucking doing my head i was on the phone to virgin media my internet providers for like half an hour and nothing worked like at the moment it goes from moderate to strict after like playing call of duty for an hour i dont want that to happen when im playing mk8 when it comes out please someone help me!!! by the way ive checked the internet like loads im not that tech savvy to understand all the jargon someone help lol!!!

  • Yen

    Read a few of the comments, and I just want to ask. People are ANGRY that they took pay cuts? Really? I see it as them manning up to their mistakes and trying to make up for it. Taking pay cuts will save the company some money. Staying instead of stepping down to fix the mistakes they’ve made. Much better than just letting off half their employees leaving a few hundred people jobless.

  • Magnus Eriksson

    I could slam those guys all day long, 24/7 for bad business decisions. But this is something I deeply respect. Respect Iwata!

  • Aleks

    Hmm, i get it. Its a display and a gesture. But you know what, these guys are incredibly wealthy already. ANYWHERE else, heads would roll, not just temporary paycuts from making tons of $$$. BUT, at the same time, I am glad they have remained in their positions. It just doesn’t impress me when the super-rich temporarily get to just be a little less super-rich.

  • ETeach

    Just like with the 3DS, it’s good to see they’re still willing to do this.

  • Nintendo Dragon

    We need more online games with voice chat aka F-ZERO An FPS even tough there is enough in the world it wouldn’t hurt.

  • Donaald

    I feel sorry for Miayamoto in a way but not for Iwata, not until he understands that this isn’t the 80s anymore.