Wednesday, January 29, 2014

Nintendo President And Other Staff Taking Pay Cut To Offset Losses

People often wonder what inspires such fierce loyalty among Nintendo fans when it comes to the Big N. While some would attribute this purely to nostalgia for their games and characters, there is something deeper that sets the company apart from its purely profit driven contemporaries. One particular aspect of the company that would surely turn the stomach of many American businessmen is the willingness of Nintendo's top brass to take a hit for the good of the company.

Nintendo President Satoru Iwata is having his pay cut by 50% to help offset losses experienced by the company due to weak sales of the Wii U in 2013. In addition to Mr. Iwata, two other representative directors, Genyo Takeda and Shigeru Miyamoto, will be taking a 30% cut. All other board directors, including Tatsumi Kimishima, Kaoru Takemura, Shigeyuki Takahashi, Satoshi Yamato, Susumu Tanaka, Shinya Takahashi, and Hirokazu Shinshi, will take a 20% reduction. The cut goes into effect in February and will continue until June at which point, a salary decision will be made depending  on how the company is performing. It should be noted that Satoru Iwata took the same action back in 2011 when the 3DS was struggling to gain traction and we all know how that turned out. 

Nintendo has earned its fan loyalty in many ways and honorable business practices such as this speaks volumes about their integrity. It's entirely possible we may see a turnaround for the Wii U in 2014 similar to the 3DS and leadership like Mr. Iwata's will help make that possible.

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