Nintendo’s tough financial fortunes appear to be continuing unabated, as the company announced lastday that it will be reducing summer bonuses for its employees by 20 percent. Reuters reports that flagging sales of the company’s console and handheld gaming devices played a role in the bonus reduction, and Nintendo will also be reducing executive compensation accordingly.
Nintendo’s Wii console system debuted to phenomenal sales in 2006, but that success has waned in the last year, as the low-power system has begun to show its age. The 3DS, a 3D-enabled follow-up to the popular DS handheld, saw a successful debut; but its high initial price point, in combination with increased competition from iOS and Android-based mobile devices, saw demand drop shortly thereafter. A price cut last year spurred interest in the glasses-free 3D console, and it has gone on to better sales since, but not enough to keep the company from recording its first-ever annual loss.
Nintendo is currently pinning much of its hopes on the Wii U, the beefed-up successor to the Wii, which sports improved graphical capabilities and a new, tablet-like controller. The game maker also expressed confidence that 3DS sales would remain solid, which will allow the company to turn a profit on the device in the fiscal year ending March 2013.