Despite strong 3DS and software sales, Nintendo is struggling.
So much so, that Nintendo expects to make a loss this financial year, based primarily on poor sales of the struggling Wii U console.
Nintendo's troubles led many commentators and analysts to call for Nintendo president Satoru Iwata's head, but the man himself quickly quashed such talk by saying he had no intention of stepping down. He has, however, announced that he will take a temporary 50 per cent pay cut in response to the company's current issues.
Alongside Iwata, legendary game designer Shigeru Miyamoto is taking a 30 per cent wage reduction along with fellow director Genyo Takeda, and the seven other members of the company's board will all take a 20 per cent pay cut, according to a report from AFP.
Iwata was quoted earlier in the month as saying that "my duty, more than anything else, is to revive our business momentum." During times of business results coming in below expectations, it is not altogether unusual for Japanese executives to take pay cuts in this manner -- whereas in the West it is often seemingly more common to see executives cut loose, perhaps with a healthy severance package in many cases.
Nintendo has faced criticism from some quarters for remaining stubbornly focused on its own hardware and seemingly not entertaining the possibility of developing as a third party for other platforms, or for exploring the massive smartphone and tablet market. However, Iwata noted that a management policy conference, due to take place tomorrow, will explore the question of how to utilize smart devices.
This doesn't mean that Nintendo will definitely be developing games or other apps for smartphones, however; despite Japanese newspaper Nikkei reporting earlier this week that the company was gearing up to support its falling financials with mini-games for smart devices, these claims were promptly refuted a day later by a Nintendo spokesperson. Nintendo's smartphone strategy will likely remain unclear until the meeting has transpired and a strategy for recovery has been put in place to appease investors and shareholders.
Iwata and the other board members will draw their reduced salaries for five months between February and June, and after that Iwata will make a decision on whether or not their wages will return to normal "after looking at the management situation at that time."