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Topic: PRICE CUT: Nintendo to lose money on each system sold?

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Apollo

1. Posted:

Nintendo's pricing revisions for the 3DS are bold - unprecedented for a system that's not even six months old. Yet that's not the only remarkable thing about this change. According to Bloomberg Japan analyst remarks, translated by Andriasang, Nintendo's new price point will result in taking a loss on every single 3DS unit sold.

This is new territory for Nintendo, which has often claimed it would not adopt a strategy of selling hardware at a loss. According to Andriasang

Source: http://ds.ign.com/articles/118/1184703p1.html

Edited on by Apollo

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turtlelink

2. Posted:

inb4 IGN bashing :P

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Superducky

3. Posted:

I doubt this is true, I read somewhere that the 3DS costs about $100 to produce. I don't know though.

That said, my faith in Nintendo is being tested. I hope the 3DS will stand up to the Vita.

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lord_hades

4. Posted:

i have a 3DS im on the eshop right now does that make me an eshop ambassador?

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CanisWolfred

5. Posted:

This is good news for the consumer at least.:)

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Apollo

6. Posted:

Superducky wrote:

I doubt this is true, I read somewhere that the 3DS costs about $100 to produce.

Even if that is true they still need to package and ship it. They also need to advertise it. Most recent major consoles have taken losses on consoles and made it back on the game sales. Nintendo went against the grain of what Sony and Microsoft were doing with the 360 and PS3.

Edited on by Apollo

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Superducky

7. Posted:

jtr235 wrote:

i have a 3DS im on the eshop right now does that make me an eshop ambassador?

Yes it does, enjoy your games.

Proud owner of a Cosmo Black 3DS

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Odnetnin

8. Posted:

Apollo wrote:

Superducky wrote:

I doubt this is true, I read somewhere that the 3DS costs about $100 to produce.

Even if that is true they still need to package and ship it. They also need to advertise it. Most recent major consoles have taken losses on consoles and made it back on the game sales. Nintendo went against the grain of what Sony and Microsoft were doing with the 360 and PS3.

Also take into account R&D costs for 3DS built-in software like Face Raiders and AR Games. I heard the likes of Intelligent Systems and HAL Labs were tapped for that stuff.

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komicturtle

9. Posted:

Sony can take a loss because they have so many divisions. Nintendon't :P

This kinda reminds me when the DS was priced at $150 at launch and the PSP was $200-ish. We'll see how they both (Vita vs 3DS) do comparitively this holiday season. Even then, I see things getting even better for 3DS. Now 3rd parties are willing to make more games for 3DS as more and more people will be buying it. Everyone wins, even if Nintendo is losing some money. It's going to come back triple soon enough.

Edited on by komicturtle

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WaLzgi

10. Posted:

Considering the success of the last generation, does Nintendo have anything to worry about?

Still, a loss is a loss, but greater sales benefit more in the long run

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KaiserGX

11. Posted:

Yep, more consoles, more games sold. Including DSiware and that jazz. Better to have more people have a 3DS and buy games then... well not that many people with 3DS buying games.

Most of us only buy a console but how many games do we buy? Edit: It's just 80 dollars.

Edited on by KaiserGX

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triforceofcourage

12. Posted:

They WILL make money. More money than Sony I would think. Just because of games. The psp was clearly more powerful than the ds. But it really didn't have enough great games to back that up. It looks like the Vita will be the same. I think the 3DS price drop was due to the Vita's price announcement. Not sales. They already knew more consoles would be sold once more games came out, they saw Vita was being sold for the same price, looked at the tech on that thing, and had a panic attack. The only ways the 3DS can sell as a console being technicly inferior, is by price and games. It was loosing in both categories until the price drop (yes I know the Vitas not out yet, talking assuming people would be making decision at vita's launch). After the realease though (imo) the 3DS will be winning in both categories. Yet still losing in technical power. If Nintendo could get their systems up to date powerwise (as the wii-U is looking to do) they could dominate.

Edited on by triforceofcourage

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Corbs

13. Posted:

Nintendo knew when Sony priced the VITA at $250 that they'd likely have to drop the price of the 3DS. I certainly didn't expect them to cut the price by $80 just 5 months after the system's launch, but you gotta do what you gotta do. And hopefully with the great first-party games coming this holiday season it will help get sales of the 3DS moving again.

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Raylax

14. Posted:

Did Nintendo ever announce prices (tentative or otherwise) for Wii U, at least in Japan? If they did, I can see those taking a slashing before they launch it. Which is also good news.

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komicturtle

15. Posted:

What's interesting is that DSiXL is going to stay $169.99

So, the 3DS and DSiXL cost the same... Which is weird. I want to get a DSiXL just to have all of DS versions and because it's large screen is perfect for Art Academy..

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Corbs

16. Posted:

Perhaps soon after Nintendo will drop the pricing of the DSi XL. You never know.

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Samholy

17. Posted:

i think they did well on this one. i love the game package and ambassador status, even if i strongly think it was plan from the start.

how the vita will answer to a low price like this in the holidays ? never been a fan of the psp first. for me, handheld gaming isnt comparable to console gaming. the kind of games and the immersion level isnt meant to be the same at all. if you wanna play a shooter or something deep and graphically involving like a 3D GTA, it is a tv screen that it needs to be experienced.
handheld is meant to be quick play ready, eye friendly, games thought and designed to be on a small screen.

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Corbs

18. Posted:

I think Sony would have had to have expected a price drop, but perhaps not quite this much this fast. I'd be curious to see if Sony sticks to the $250/$300 prices on the VITA systems.

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komicturtle

19. Posted:

It's inevitable that the DSiXL will drop in price. I just expected it to drop along with DSi all at the same time when this was announced. Just currently, Nintendo has no plans to drop the pricing. Sony will clearly stick with the $250/$300 price. The reason they did that was to compete directly with Nintendo. I don't think they could afford dropping it to $170. Maybe $200, but they'll be selling the console at bigger loss than what they initially planned. Looks like Sony is back on being "the one with the most expensive hardware" again.

Also, this price cut must also mean and increase the chances of the Flame Red 3DS being bundled with Super Mario 3D Land and/or Mario Kart for $250. On Black Friday, particularly (if that, then no MK7 then). That will further push 3DS sales.

Edited on by komicturtle

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Hardy83

20. Posted:

I doubt they are losing money on the systems. They said it was more expensive then the DS to make, but I bet when they said that the DS cost like....30 bucks to make.
So the 3DS could cost like 80-100 plus shipping, marketing blah blah. So at the very worst, they are probably breaking even.

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