The reason for Nintendo's decision to cut the price of the 3DS worldwide is revealed in its latest financial results: only 710,000 units of its glasses-free 3D handheld were sold worldwide in the three months to June 30.
The dismal figure, which was comfortably outstripped by the ageing Wii and 3DS's predecessor DS, was a driving factor in a drop in sales revenue of more than 50 per cent, to ¥93.92 billion (£737.57 million). While Nintendo posted a loss of ¥25.5 billion (£202.8 million), it was broadly comparable to last year's results, with losses rising by just 1.1 per cent.
However, this year's results will be poorly received by investors who were hoping the release of new hardware would herald a return to profit. Instead, Nintendo's latest handheld was outsold by Wii, which sold 1.56 million units, and DS, which sold 1.44 million.
The poor performance of 3DS is further reflected in software sales: just 4.53 million games were sold during the quarter, compared to 12.1 million DS games and 13.4 million Wii titles.
Nintendo pinned the decline on the strength of the Japanese yen against the dollar, Wii U R&D costs, and 3DS marketing, but 3DS sales are surely the biggest factor. With several high-profile titles due before the end of the year - including Super Mario 3DLand and Mario Kart 7, which will be released in November and December respectively - cutting the price of the hardware in time for Christmas seems a wise decision.
In Japan, the price will be cut by 40 per cent to ¥15,000 on August 11, and the following day the US price will be reduced by a third, to $169.99. Nintendo does not set the retail price of 3DS in Europe, but will be reducing the trade price by a third before the end of September.
Comments
7Launching a console without AAA - if that term is still in use - original titles is always a hard sell, and Nintendo will have the same problems with the Wii U if they don't get quality titles ready in the first couple of months.
At least the Wii had the mighty, charming (and often under-rated) Wii Sports to show its hardwares uses. The 3D still feels unnecessary to the gaming experience.
This lack of quality titles is, of course, further exaccerbated by the general 'threat' that smartphones present to mobile/handheld gaming.
I really feel that Nintendo is beginning to run out of gimmicks - sorry, 'unique features' - for its machines, and faces an uphill struggle with the 3DS and Wii U...
3D will struggle until games are produced that couldn't be played in 2D. Otherwise it's just a gimmick.
"Needs games STAT!!!!!" Why did I buy a £200 pedometer?
I think nintendo will survive
@Mr E Some people would say the same about HD...what games need HD? Personally I like both HD and 3D.
@Bloodwych But didnt u know the launch titles and release dates for games? Why did u buy it?
@punky Why did u buy it?
Kelloggs 10,000 Step Challenge
Nintendo made a stupid mistake launching a console without a killer app. Currently, there is no justifiable reason to buy a 3DS and the sales reflect that.
They don't only need a killer app, they need killer apps across a variety of genres. Since the N64, how many FPS's, driving or fighting games have any of you played on Nintendo's hardware that was truly awesome? There aren't many people who are prepared to put up with only having platform games anymore.