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Satoru Iwata will take a 50% pay cut

Back in July 2011, Nintendo president Satoru Iwata announced that he would be taking a 50 percent pay cut following poor 3DS sales. With the Wii U now facing a similar situation, Iwata is making a similar move.

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weekev151416d ago

What a nice gesture. Yeah I screwed up so I will take the punishment for the poor performance. Lets hope that when backed into the corner Nintendo come out swinging.

Arkworthy1416d ago

It seems more like a fake gesture than anything. He took a 50% pay cut in 2011. Obviously that was a most temporary measure because he's taking ANOTHER 50% now.

My opinion: A boardroom circus to look good in front of shareholders.

gedden71416d ago

Umm you see NO other company's CEO COO OR ANYONE do such a thing for how ever long. But let's keep it in the gaming realm.

MS is burning money for the xbox brand which has not made $1.00 in profits... $2 billion and counting in loses so far. They send all their profits in adverts 3rd parties dlc or what ever.. Sony is practally going out of business.. The only thing good about sony is the ps4 but the rest of the company is in the sh!tter.

Analyst say they have a whopping 79% chance of going bankrupt in 2 years.. Where's their companies "fake" gestures of whatever you think is going on???....

People like you give very give little respect to nintendo and management. Smh to your comment and the way u think....

Arkworthy1416d ago

I see no reason that I need to give respect to Nintendo just because they're hitting hard financial times. I didn't mention the other companies at all. Stop trying to bring petty console wars into this.

WeAreLegion1416d ago

Not true gedden7. Kaz took a 50% pay cut, as well. Many CEO's do it when their company is doing poorly.

mcstorm1416d ago

@gedden7 where did you get "MS is burning money for the xbox brand which has not made $1.00 in profits... $2 billion and counting in loses so far." did you not see the last quarter results for ms?

Sony are not going out of business yes they have issues but the PS division is the one side making the money at the moment.

Nintendo are not in as bad situation as people thought they would be but its not the best. Its good to see a company making cuts from the top rather than the bottom as this is how it should be if a company is not doing as well as it wanted.

I live in the UK and when the banks had the issues there were CEO's being given bonuses ect even though the banks were saved by the tax payer.

Its nice to see the rich helping out for once rather than the rich get richer and the poor get poorer.

user55757081416d ago

well then he's going from being rich to being rich HOW SAD

make your salary one dollar like roger goodell did and this will be actual news

GhostTurtle1416d ago

The dude needs to man up and resign.

lilbroRx1416d ago (Edited 1416d ago )

@GhostTurtle, how exactly is running away from a problem and dumping it on someone else manning up?

Iwata resigning is something that Nintendo haters want, and they want it for reasons that are far from beneficial to the company.

SilentNegotiator1416d ago (Edited 1416d ago )

The man's gonna be working almost for free before you know it.

Chrischi19881416d ago

Bubble up for LilbroRx :)

So true. Iwata is proud and will do best as he can, to make it right, I dont think, anyone else will be much better. That man brought so much success to nintendo, that one year is no biggy, especially since the handheld is doing very well, not as much as they wanted, but whatever, it whipes the floor with everything that could be considered competition.

ChickeyCantor1416d ago

"Kaz took a 50% pay cut, as well."

No that's japanese culture for you. Americans wouldn't stand for that shizzle.

kreate1416d ago (Edited 1416d ago )

'Umm you see NO other company's CEO COO OR ANYONE do such a thing for how ever long'

actually there are ceo's who gets paid minimum wage, or one who doesn't get a paycheck at all. this is in America.

this gesture is to motivate their employees its not all about the money.

pick up stix ceo was getting paid minimum wage just like their other workers. and he would physically go into the restaraunts and work himself side by side with his fellow employees.

there are companies out there that does this. its not a exclusive move to Nintendo.

just becuz u never heard of it, doesn't meant it doesn't exist.

+ Show (8) more repliesLast reply 1416d ago
cleft51416d ago (Edited 1416d ago )

Regardless of what you think of his performance, imagine taking a 50% pay cut at your job for a situation that wasn't entirely your fault. That is no small thing, even if you have saved up money. I understand we all aren't thrilled with Nintendo's performance right now but give credit where it is due.

Also, I could never see a western CEO doing this no matter what the state of affairs the company was in. This is more than a gesture, it's a show of serious dedication to returning the company to being profitable.

ravinash1416d ago

True...western CEO would keep giving him self bonuses.

While a nice gesture, how much is he earning now?

speedforce1311416d ago

No. This was entirely their fault. In western companies, Iwata would have been axed by now. What credit is due? Nintendo has been out of sync with the markets now for two console generations. The Wii U was a wake up call that they cannot rejoin the race until they get with the times and play nice with the rest of the industry.

You Nintendo fanboys can downvote me all you want but it's the truth and it's unfortunate that you can't see how things really are.

ABizzel11416d ago

@Cleft5

Actually it was his fault, and I agree it wasn't 100%, his fault, but it was 100% top management fault, and they all should be taking a similar pay cut.

The Wii U's problems aren't hardware failures as in the console doesn't work. It's a hardware failure for the simple fact they once again tried to skate by instead of taking advantage of being the only console out and offer the first taste of the true next-generation of games.

That was a Top Management decision to go with the final hardware in the Wii U.

Pricing the Wii U at $299 - $349, without half the functionality of the PS360 which are 7 and 8 year old consoles that cost $199 and offer a similar gaming experience graphically and gameplay wise, was another failing of the Wii U.

Pricing and features was a Top Management, and if you have only a game console with apps (no Blu Ray, basic apps, etc...), then that price needs to reflect a game console.

The decision to not compete with Sony and MS in terms of online gaming, was a nail in the coffin pretty much eliminating the majority of PS360 owners who might have wanted a Wii U.

Online was a Top Management decision.

The Wii U's failing are all at the executive decision level, and they should be the ones paying for these mistakes. Not the regular employees who did nothing but follow their leaders orders. The Wii U isn't in trouble because the team had a bad month at the office, it's in trouble because the coaches didn't tell their players the right game to play.

Qrphe1416d ago

Just like he's responsible for the success of the Wii and DS, he's responsible for the failure of the Wii U. He IS thr CEO and he IS taking a cut for a reason after all.

SilentNegotiator1416d ago

He would have been fired or re-assigned by now in the West.

+ Show (2) more repliesLast reply 1416d ago
Charybdis1416d ago (Edited 1416d ago )

Its not that uncommon for Japanese CEO's to cut their own salaries in bad times.
edit: an obvious example were the pay cuts of Sony CEO's in 2012

KevinCubes1416d ago

Your avatar made me want to play Conker live and reloaded on my original Xbox I think I will now.

MEsoJD1416d ago

Dammit this guy just needs to resign.

Muffins12231416d ago

Honestly if i worked for nintendo i would be mad at him if he did not.Did a shit job so he should get a shit pay.

+ Show (3) more repliesLast reply 1416d ago
GreenRanger1416d ago

"poor 3DS sales"

Whaaaat?! I thought the 3DS was destroying everything?

SilentNegotiator1416d ago

lol, actually reading is important.

SilentNegotiator1416d ago

To clarify, I meant that GreenRanger should have read. The first sentence of the article description makes it clear that they meant when 3Ds wasn't doing well.

MasterCornholio1416d ago

Let me put it this way. We both agree that the 3DS is selling very well. There's no way to disprove that. However, the 3DS isn't performing as well as Nintendo thought it would which is why they cut their sales forecast for it. This is the reason (along with the Wii U) why Nintendo executives are cutting their salaries. Because if everything sold what they expected then we wouldn't have this issue.

MasterCornholio1416d ago (Edited 1416d ago )

@Disagrees

But Nitnendo reduced their sales forecast for both systems. How am I wrong?

Neonridr1416d ago

you are right in saying that, but they were specifically referring to the poor sales of the 3DS in 2011. Once the price cut came into effect and titles like Mario 3D Land and Mario Kart 7 released, the rest is history.

wonderfulmonkeyman1416d ago

The 3DS's case is different from the Wii U though.
Even though it's not selling as they expected, the 3DS is STILL out-selling everything else, which makes it a sales success regardless of whether or not it matched up to Nintendo's too-high standards for it.

deafdani1416d ago

Back in 2011. Seriously, pay attention, man.

Muffins12231416d ago

Compared to DS sales and game-boy sales 3DS are poor.People act like its doing great but its not doing "nintendo great" meaning its not selling well as previous generations.Probably because of smart phones.

+ Show (1) more replyLast reply 1416d ago
Chrono1416d ago

Poor guy, he will only make 1 mil USD a year now.

Veneno1416d ago

He won't be able to get that 5th Porsche :( :( :(

lilbroRx1416d ago (Edited 1416d ago )

He earned that by making Nintendo billions.

He made no where near that much at the start but when the company was seeing huge success with the Wii, everyone received pay raises.

http://www.edge-online.com/...

Iwata makes the least out of all of the major gaming CEO's in Japan. The head of Sony awards himself 5 times as much as Iwata.

InTheLab1416d ago (Edited 1416d ago )

Dude your article is over 3 years old and is quoting salaries that are 4 years old. And Stringer doesn't run Sony anymore. That's Kaz...the man responsible for the slow but steady turnaround at Sony.

Kaz made .45m more than Iwata and has went through numerous pay cuts voluntarily as well as other top execs at Sony.

http://www.huffingtonpost.c...

LOL_WUT1416d ago

He should just resign don't know why the loyalists keep clinging on to him he's ruining the company but their too blind to notice ;)

NYC_Gamer1416d ago (Edited 1416d ago )

Where's the plan to turn the company around?these pay cuts and apologies aren't going to correct things with Wii U..Nintendo needs to do real work to fix all the issues dealing with software and 3rd party relationships.

BoneBone1416d ago

Last time they took a pay cut the 3DS went into orbit. I can't help think thinking everyone else on the board is saying to themselves "hang on, why do we have to take a pay cut? It's all your fault, Iwata, not ours!!!". :-P

Of course, it's places like NeoGAF who try and make out it's all one man's fault... they don't actually know it is... as for most things that come out of that place.

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