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Nintendo to Take a Loss on Each 3DS Sold

Nintendo this week announced that it was cutting the price of its newest portable, the 3DS, by a whopping $80. While that certainly addresses the crowd who thinks Nintendo was crazy to charge $250 for the device in the first place, Bloomberg Japan reports that Nintendo will now be taking a loss on each 3DS is sells.

The price of the 3DS is set to drop on August 12 and, according to Bloomberg Japan, that's the day when Nintendo will start seeing a loss on each unit. Japanese blogger Andriasang reports that, at a press conference in Osaka yesterday, Nintendo CEO Satoru Iwata justified the move by saying such moves were necessary in order to improve fiscal performance.

Nintendo has yet to confirm the European price drop for the 3DS, which is scheduled for the same August 12 date as the U.S., but told CVG that it would be slashing the price by about a third. On top of the price cut, Nintendo is offering early adopters who paid full price will be given access to 20 free Famicom (NES) and Game Boy Advance Virtual Console games.

  • cmartin011
    that's interesting hmmm i got the first post yay!
    Reply
  • Sorry, couldn't resist pissin' in yer wheaties (gave ya thumbs down) :P Maybe I'll pick one up for the kid. She's going crazy over the new tablet, so this may be just the thing... hahaha
    Reply
  • Haserath
    Nintendo has just found out the hard way that a phone/handheld is the only way to attack this market.

    This is probably more difficult to put together than something like a PS3, so I'm not surprised the cost is right up there with it even for its size. Parts don't make much of the cost; yields are the biggest factor and the PS3 should have high yields at this point.

    I believe the handheld market is just about dead; who has the time to play high quality games on a handheld? I would rather play a game on PC/console before a handheld, so the only use would be when I'm not able to do that but usually I'm doing something else that is better/wouldn't allow me to play the game.
    Reply
  • belardo
    I don't think so, Haserath. Other ds units are selling fine. There is a market for these handhelds. Playing games on cellphones sucks up battery power which reduces the functionality as a PHONE! Meanwhile, a dsi can run for 6-9 hours on a charge, that is not possible with a galaxy phone.

    Touch screen gaming is not as good as joypads. Your hands / fingers are visually in the way. But by all means, there is a market for games on touch screen devices.

    Also, a nintendo ds sells for $100-180, depending on model. Far cheaper than buying a phone, especially when buying something for children.
    Reply
  • eklipz330
    @haserath, yeah, see the thing is you're wrong.

    maybe perhaps one day, the dedicated mobile handheld gaming market will take a hike. with the multifunction psVita coming out, it seems pretty reasonable, I don't even think we can consider it a dedicated handheld device. but the 3ds WILL sell. I think they should have entered the market at $199, they would have probably avoided this entire mess. but with so many great games that the appstore will never touch, i doubt it'll be going anytime soon
    Reply
  • $250 for the handheld. No crap it's going to fail, even if it is Nintendo.

    The initial price for the DS was $150, which is, well, a much more affordable product. Take into consideration that the kids still have their DSs (yeah, I remember when I got my DS and still saw TONS of GBAs) -- parents will least likely buy another handheld, as the one they have is "doing its job."

    Nonetheless, the 3DS was an over-hyped POS. The very fact that you have to be at a specific angle to play it when utilizing the 3D is... dumb. In addition, eye strains when viewing the 3D (yea, when I tried it out at my local Best Buy, that was the next drawback I realized after playing for five minutes)? Yeah, talk about a feature you won't use all the time..

    I'm still rocking my DS and PSP, so.. no need for the hate?
    Reply
  • alidan
    eklipz330@haserath, yeah, see the thing is you're wrong.maybe perhaps one day, the dedicated mobile handheld gaming market will take a hike. with the multifunction psVita coming out, it seems pretty reasonable, I don't even think we can consider it a dedicated handheld device. but the 3ds WILL sell. I think they should have entered the market at $199, they would have probably avoided this entire mess. but with so many great games that the appstore will never touch, i doubt it'll be going anytime soon
    the reason they are in this mess is because there are no games for it.

    it has been what 3 or 4 months in the us launch, and there are only a handfull of games, most ported to the 3ds from the big consoles, and one from the 64.

    the only must have is zelda, but i wont pay for a console without 5 games for it or one REALLY great new game, and i have oot, and played it to death on my 64.
    Reply
  • drwho1
    I don't care about nintendo, but if they want this POS to succeed they need to (1) drop the DS price (2) drop the 3DS some more and (3) have more games available.
    Reply
  • HaserathNintendo has just found out the hard way that a phone/handheld is the only way to attack this market.This is probably more difficult to put together than something like a PS3, so I'm not surprised the cost is right up there with it even for its size. Parts don't make much of the cost; yields are the biggest factor and the PS3 should have high yields at this point.I believe the handheld market is just about dead; who has the time to play high quality games on a handheld? I would rather play a game on PC/console before a handheld, so the only use would be when I'm not able to do that but usually I'm doing something else that is better/wouldn't allow me to play the game.
    How's the weather up there?
    Reply
  • Malachi1975
    Just to be perfectly fair before all the naysayers show up and bash Nintendo: So, Nintendo is basically doing with the 3DS what Sony and Microsoft did with EVERY 360 and PS3 for their first several years? Not. A. Shocker. Software is the money-maker. Now... NIntendo just needs to support the 3DS with some actual games.
    Reply