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Satoru Iwata and Shigeru Miyamoto to take pay cuts

Nintendo execs and board members to have salary reduced by up to 50 per cent

Senior Nintendo executives are to take pay cuts following its report of profit and revenue declines.

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Japanese newspaper Nekkei reports that company president Satoru Iwata will take a voluntary pay cut of 50 per cent, while Nintendo's other two directors, including Mario creator Shigeru Miyamoto, will take a 30 per cent reduction to salary.

The remaining Nintendo board members will have their salary reduced by 20 per cent.

In early January Nintendo warned that it expects to post a net loss of 25 billion yen (£147m) for the financial year ending March 2014, citing much weaker-than-expected sales of Wii U and 3DS hardware.

In its latest financial report it revealed a profit and revenue entered decline for the nine months between April and December. Although it posted a net profit of about £59.5 million ($99 million), this number was down thirty per cent on the previous year.

Nintendo has indicated it is thinking about a new business structure, but has said its fortunes cannot be changed simply by releasing games for mobile devices.

"We cannot continue a business without winning," Iwata said. "We must take a sceptical approach whether we can still simply make game players, offer them in the same way as in the past for 20,000 yen or 30,000 yen, and sell titles for a couple of thousand yen each.

"We are thinking about a new business structure," he added. "Given the expansion of smart devices, we are naturally studying how smart devices can be used to grow the game-player business. It's not as simple as enabling Mario to move on a smartphone."

Claims that Nintendo will develop minigames for smartphones and tablets have been outright denied by the company: "Nintendo's intention is not to make Nintendo software available on smart devices and as such, we can confirm that there are no plans to offer minigames on smartphone devices," it said in an official statement.

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