After an embarrassing performance of the Nintendo 3DS which has already received severe price cuts, Nintendo has announced a 50.2% decrease in net sales and a 84.3% decrease in net profit in comparison to the last financial year.
Nintendo’s president and board of directors are cutting their salaries voluntarily. Satoru Iwata, the company’s president, would be taking a 50% cut to his estimated $770,000 salary whilst the board of directors will have a 20% to 30% cut.
Nintendo’s profit forecast has fallen by 82%, they forecast their net income for year ending March 31, 2012 to be 20 billion yen falling dramatically from the 110 billion yen prediction. The profit would reach a 27 year low for the company. Forecasted sales have not dropped.
Nintendo told investors that a “lack of hit software titles” caused a slump in software and hardware sales as well as price markdowns for the Nintendo 3DS, Wii and Nintendo DS in certain markets. Advertising also increased for the Nintendo 3DS and research and development expenses were incurred for the Nintendo Wii U which will be released in 2012.
Customers who purchased a Nintendo 3DS at the higher price of around $249 instead of the discounted $169 would be able to download 20 free games courtesy of Nintendo.