Nintendo Loses $300 Million, Miyamoto and Iwata Takes Pay Cut

Nintendo Loses $300 Million, Miyamoto and Iwata Takes Pay Cut

Just under 6 months ago Nintendo released the update to their highly popular touch screen handheld gaming system, the Nintendo DS. Always known for revolutionizing the gaming industry by seeking to expand the market and following the Blue Ocean Marketing Approach, Nintendo has moved away from the simple hand held controller dominated by only pressing the right buttons at the right time. By innovating the industry and gaming experience they brought touch screen gaming to the center stage just before touch screen devices became popular to the everyday market and began being implemented into every device. Nintendo also brought motion control gaming to the living room of millions, clearly dominating their Microsoft and Sony competition in the current gaming generation, as they were forced to quickly play catch up and copy Nintendo’s motion control idea. With the end of the Nintendo DS’s life and the Nintendo Wii also with an announced predecessor already, changes were due at Nintendo. In response to the Nintendo DS the Nintendo 3DS was released. A touch screen, dual screened device, it also included 3d gaming that did not require the use of glasses. Six months in though, the Nintendo 3DS has not sold as well as Nintendo had hoped and with the other devices at the end of the market life cycle, the company took a large economic hit.

 

Nintendo Loses $300 Million, Miyamoto and Iwata Takes Pay Cut

Nintendo Loses $300 Million, Miyamoto and Iwata Takes Pay Cut

 

To salvage the system, that while innovative and includes a large backlog of downloadable hits from the past generations, Nintendo reduced the price from $250 to $169. This comes right after Nintendo’s 2nd quarter reports came out. In the end Nintendo lost nearly $330 million.

 

Coming off of weak sales of the near dead consoles, and due to the lack of game support for the Nintendo 3DS that led to its weak sales, the year’s total forecast was also cut by over 82 percent. Giving the company some hope is the soon to be released titles of The Legend of Zelda: The Skyward Sword Walkthrough, Mario Kart 7 3DS, and Super Mario 3D Land.

 

Taking responsibility for the recent sales decline and the failure for the Nintendo 3DS to get traction and take off, President Iwata and Shigeru Miyamoto took large pay cuts from 20-30 percent for developers and to 50% for President Iwata.

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