The phrase, "Put your money where your mouth is," is perhaps used too much. But in the case of Nintendos current president Satoru Iwata, its entirely appropriate. In the wake of disappointing financial results that were first revealed on Thursday, Iwata announced he would take a 50 percent cut in his fixed salary.
In statements made to company shareholders and posted on Nintendos web site, Iwata not only announced that his salary would be cut in half but that the companys representative directors would also take a 30 percent salary price cut. Nintendos other directors would take a 20 percent salary price cut. Iwata added, " ... the deduction of the fixed compensation is what we volunteered to do in order to show our sincere attitude and to fulfill our responsibility. We really must recover our financial performance and take Nintendo back into the position in the marketplace where it is well appreciated."
On Friday, Nintendos stock price plummeted down 20 percent after the company announced much lower than expected financial results. Part of the reason was the poor sales of its new Nintendo 3DS portable game console. Nintendo also announced a big price cut in the 3DS, from $249.99 to $169.99 beginning on August 12. In his statement to shareholders, Iwata said, " ... one of the things we have learned is that it has taken longer than we had originally expected in order for the appeal of this product to widely spread. We feel that those who have experienced the system appreciate its attraction, but this appreciation has not necessarily been expanding at the speed which we had expected." Iwata said that price cut should expand the user base of the 3DS, adding, "Without creating such a circumstance, we would not be able to realize explosive sales in the year-end sales season."