Nintendo boss to cut pay in half over profit dive

Wednesday 29 January 2014 18.07
Nintendo warns that it will slip into the red for the fiscal year to March
Nintendo warns that it will slip into the red for the fiscal year to March

The head of Nintendo said he would slash his pay in half as the videogames giant said its nine-month profit slumped 30% because of weak demand for its Wii U games console.

Nintendo President Satoru Iwata said he would draw a reduced salary for five months to atone for the downturn, while other members of the board will take a pay cut of between 20-30%.

The news comes just over a week after the Kyoto-based firm shocked investors by warning it will slip back into the red in the year to March and slashed its Wii U sales forecast. 

It said today that it earned 10.20 billion yen ($98.8m) in the nine months to December as revenue fell 8.1% to 499.12 billion yen. It also reported a 1.58 billion yen operating loss.

Shares in Nintendo, the maker of the Donkey Kong and Super Mario brands, have fallen about 12% since it said earlier this month it would make a loss this fiscal year and sell just 2.8 million units of the Wii U worldwide.

That is less than a third of its earlier forecast for nine million consoles, and deals a blow to its hopes of matching the blockbuster success of the original Wii.

Analysts have criticised the new system's limited game selection for the poor results, as rivals Sony and Microsoft enjoy robust demand for their new PlayStation 4 and Xbox One consoles.