Creating video game systems alone can no longer keep Nintendo afloat. The entertainment system creator has a new plan in mind to boost its finances. Nintendo plans on cutting employee summer bonus pays by 20 percent in a desperate attempt to increase profit.
Following the end of Nintendo's fiscal year in April, the company reported that for the first time, it had experienced annual loss rather than growth. This was the result of diminishing sales for their most recent Wii and Nintendo DS products. Also contributing to this financial loss is the lack of sales for the Nintendo 3DS, which caused a fall in Nintendo sales to 36 percent, below $8 billion for the year.
Lack of sales have proven that Nintendo's latest game systems are not enough to bolster the company out of its financial slump, so everyone in the company will be affected by this dock in pay. In addition to the 20 percent bonus cuts placed on lower tier employees, the company's higher ups will also feel the burn from these bonus cuts, although it has not been specified how much it will affect them.
Nintendo has been trying to get itself out of this financial plummet since July 2011 when the company decided to reduce Nintendo 3DS prices from $250 to $170 in attempts to increase sales.
Following that, President of the company, Satoru Iwata, saw a $1 million drop in his salary. Other company executives saw a 30 percent fall in their salaries, while other Nintendo employees experienced a 20 percent pay reduction.
Not quite out of its financial burden just yet, Nintendo employees should not be surprised to see another pay cut if this is the company's way of profiting in times where Nintendo game sales are not doing it for them.
