Nintendo to make loss on each 3DS after price cut
29th Jul 2011 | 07:34
Japanese giant goes against tradition to boost sales
Nintendo's decision to slash the price of its Nintendo 3DS handheld console following disappointing sales will mean that the company will make a loss on each unit sold.
According to the Japanes arm of Bloomberg, Nintendo's radical price cut – which CVG ascertained was likely to be about a third off in the UK – means that the gaming giant is making a loss.
Microsoft and Sony both accept losses on the consoles that they sell, with game licensing meaning that they can afford to take a hit on the hardware because of the profits from the software.
Nintendo has traditionally taken the approach that profit should be made on the hardware as well – something that served it well when the Wii became a massive seller.
Nintendo's quarterly results stated that just 710,000 of the latest handheld had been sold, has as many as its predecessors in the DS range.
The decision to bring about a significant price cut represents a risk to Nintendo, but even for those that are not a fan of the autostereoscopic screen the new price point means that other improvements – like the analogue joystick – make it an attractive proposition.
And you can always turn the 3D off.
You can check out our preview video of the Nintendo Wii U below: