The cause of the profit dive was a weak demand for its new Wii U console as gamers are enticed by cheap, downloadable games for mobiles and better offerings from Microsoft and Sony. Satoru Iwata took his salary to the Nintendo carpark where he recited a poem about how profit was like a cherry blossom and slashed into it with a paper knife.
He told assorted hacks that he would draw a reduced salary for five months to atone for the shame of the downturn. Other members of the board will take a pay cut of between 20 and 30 percent depending how much honour they have. Nintendo is due to hold an analyst conference Thursday to outline plans for a new business strategy.
The news comes just over a week after the Kyoto-based company shocked investors by warning it expects to slip back into the red in the year to March and slashed its Wii U sales forecast owing to weaker-than-expected holiday season demand.