Nintendo to cut staff summer bonuses

Nintendo has decided to slash its staff’s summer bonuses by 20 percent.

The Japanese company, which announced flagging figures for the first time ever earlier this year, is reported by the Nikkei to be taking the action following a declining demand for its Wii console software and hardware.

Earlier this year the company announced a loss of £284 million (647.6 billion yen) for the financial year ending 31 March 2012, totalling to a 36.2 percent fall on sales from the previous year.

It said at the time that this was mainly due to a decrease in unit sales of the Wii and Nintendo DS software, which sold at 70.0 million units and 37.0 million units respectively.

Other factors including price reductions of hardware and inventory markdowns were also cited as impacting on the profits.

At the time it stated that it would strive to do better, claiming: “For the fiscal year ending March 31, 2013, we aim to make the “Nintendo 3DS” spread more widely and to make the “Wii U” spread from the beginning of its launch.

 “We will continue to strive to expand our business by providing games and services which make use of the features of those hardware systems.”

It seems that cutting bonuses will also be a key factor in the company’s strategy for bringing it into the money again, with head-honchos at the company also set to have their bonuses slashed.

One employee, who wished to remain anonymous, told TechEye that there had been no officially advise that bonuses were to be cut. However, the source pointed out that rumours of this had been “floating round the office since before the results were announced”.

“We’re all aware of the rumours but we haven’t had any official confirmation,” the source told TechEye.

“If there are truth to them then they’ve left it pretty late to tell us. Part of me thinks that if this is the case, they’ve done it on purpose so we work our a***s off in anticipation only to be disappointed.

“It’s a c**t’s trick and typical of a big company,” the source said. “Protect yourself first and don’t give a toss about  the ones that really make your business go round.”