On January 29, Nintendo’s President, Saruto Iwata decided to slash his salary in half due to its company’s profits dropping 30 percent over the past nine months. Iwata told reporters he would take this salary cut for five months to compensate Nintendo’s lackluster sales. Other board members will also take a pay cut of between 20 and 30 percent. When asked if he would continue the pay slash beyond June, Iwata said “I will make a decision after looking at the management decision at the time.”
Nintendo is set to hold an analyst conference Thursday to outline plans for a new business strategy. The decision comes a week after the Kyoto based company slashed its Wii U sales forecast; resulting from lackluster holiday demand for the console (http://games.yahoo.com/news/nintendo-boss-halve-pay-profit-dives-1047534...).
The Wii U debuted in November of 2012 and since its release, Nintendo has struggled to stay afloat with its competitors: Xbox 360 and PS3. Its sales were around equal to that of its predecessor, the Nintendo Wii. The release of the PS4 and Xbox One added insult to injury with Nintendo. The trademark games, which Nintendo expected would boost Wii U’s sales, have failed to do so thus far.
The company sold 2.8 million Wii U units worldwide during the previous fiscal year. On the other hand, PlayStation already sold 4.2 million units worldwide.
Analysts partially attributed Wii U’s lackluster sales to a limited and unattractive game selection. Another criticism is Nintendo’s refusal to license trademark games, such as Super Mario and Donkey Kong, for mobile devices, but Iwata hinted that could change soon. “How to [utilize] smart devices is the theme of our management policy conference (Thursday).”
Will making trademark games available for mobile phones boost Nintendo’s profits? Can the Wii U be saved? Will the Wii U discontinue? Only time will tell (http://games.yahoo.com/news/nintendo-boss-halve-pay-profit-dives-1047534...).