Nintendo president Satoru Iwata plans to stay with the company despite the huge losses they’ve incurred the past years. The gaming company executive said that despite not reaching their target sales for the year, he has no plans of quitting and will continue to lead the company out of their current slump.
The embattled company is now expected to report its losses for the third consecutive year after the end of its fiscal year in March 31. Questions on the company’s current business model are surfacing and reports say that a new model is being outlined for the investors’ meeting on January 30. Iwata said that while he do not plan to step down from Nintendo, he is willing to take a pay cut to cover the losses incurred by the company. Speaking at a press conference, he said, “in light of the significant downgrade, top managers need to be held responsible in some way, such as slashing executive compensation.”
The reported new business model outlines the company’s plan on salvaging the plunging sales and how Nintendo plans to address it. Iwata noted that the company “needs to seriously ask whether they can keep making just game systems and sell them the same way we have in the past.” With people predicting that smartphones and tablets will make game consoles obsolete, Iwata still remains optimistic. Plans to bank on the “momentum of the Nintendo #DS system in the domestic market while revitalizing overseas operations,” are expected to bring the company back to its competitive edge among the other gaming companies. With new games coming out for the Wii U console this year, Iwata is confident it will help them get right back on top. He further stated that the matter is not on how unpromising the game system business looks as he believes that it is not so, but whether or not they can “adapt to the changes in the world.”
[via Nikkei Asian Review]