News Column

Nintendo executives take drastic pay cuts after results disappoint

January 30, 2014

OLIVER SMITH

NINTENDO reported lacklustre results for its traditionally strong third quarter yesterday alongside the announcement that its chief executive and senior staff would take pay cuts of up to 50 per cent. The video games maker, behind iconic gaming franchises Mario and Donkey Kong, said its operating profit fell 6.9 per cent during the quarter to 21.7bn (127.4m). The company said domestic sales of hardware and software were strong but that overseas sales sagged in the holiday season. Revenue fell 11.5 per cent on the year to 302.6bn during the same time. Chief executive Satoru Iwata will take a 50 per cent pay reduction, on top of a 50 per cent pay cut that he had already taken following the Nintendo 3DS's disappointing launch. The entire company board of directors also took a 20 per cent pay cut alongside Iwata. On 17 January Nintendo cut its full-year shipment forecasts for its Wii U console from 9m to 2.8m


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: City A.M. (UK)


Story Tools