The poor sales of the Nintendo 3DS have hit The Big N hard, as the company reported yesterday that it has suffered a loss for the quarter and has cut its annual profit estimate by 82 percent. The report has caused a ripple effect, with stocks plunging 12 percent to its lowest point in nearly five years.
Stocks have not been this low at close since November 2006, and the percentage drop is its biggest since January 2009. This has given Nintendo’s stock a total drop of 40 percent from the beginning of the year.
To compensate for the 3DS’ poor performance and the loss of profits, Nintendo President Satoru Iwata has taken responsibility and decided to cut the pay for both himself and other members of Nintendo’s high-level management.
"For cuts in fixed salaries, I’m taking a 50 percent cut, other representative directors are taking a 30 percent cut, and other execs are taking a 20 percent cut," said Iwata.
Iwata’s current salary and compensation total to approximately $2 million, which is low when compared to American CEOs.
