Nintendo Cites 3DS Price Cut As Cause For Massive Loss [Nintendo Blames The 3DS Price Cut For Its First Half Losses, Proposes A Plan To Attract Non-Gamers To The 3DS In 2012]

Posted on TFTS by Eric Abent on Friday, 28. October 2011 under: Computer/Console Gaming

Nintendo’s report of massive losses in the first half of its fiscal year currently has the internet buzzing with talk about Nintendo’s demise, but ignoring the doom and gloom about Nintendo predicting its first annual loss in 30 years, what was the major cause of the first half loss?

It probably won’t come as a shock to learn that it’s because of the 3DS price cut that occurred earlier in the year. When Nintendo announced it, it was news that took many by surprise – slashing the price of a new console or handheld just months after release is normally a sign that the console is in major trouble. Even though the price cut had a very negative effect on Nintendo’s books, Satoru Iwata explained that it was a necessary action in order to “course correct” the sinking 3DS.

In order to succeed next year, Iwata explained in a note to investors that Nintendo plans to attract non-gamers to their handheld by introducing new genres of games, like they did with Brain Age on the DS:

Some of you may be thinking that, with the expansion of smartphones today, proposing new genres, such as the company did with Brain Training and Wii Fit, might be difficult. However, the company will aim to develop and launch products that can provide meaningful surprises to the public by taking advantage of the company’s position of being able to make new proposals that integrate both hardware and software, and of its ability to develop products that can be accepted by a wide variety of consumers, irrespective of age, gender or past gaming experience.

Nintendo’s casual-friendly attitude helped make the Wii and the original DS a success, but now it seems that they’re stuck with pleasing the casual crowd, especially now that they’ve appeared to have alienated a good number of the core crowd. That’s going to be increasingly difficult with the rise of smartphone and tablet gaming, but hopefully we can see Nintendo bounce back in 2012.

What do you think? Will Nintendo make a comeback in 2012 by creating new genres that attract non-gamers to the 3DS, or should they just stick with keeping the fans they already have? Head down to the comments section and share your thoughts!

Jay
I bought the 3DS and even though I complained about the screen hurting my eyes, the fact the the flip screen was loose, it felt cheap!
Bubbakanooch
NIntendo should have released the DS’ successor a couple of years ago, not waste time with the DSi. The “casual” gamers that used to buy Nintendo products have moved onto smartphones/ipods and the slow system software updates for the 3DS isn’t going to get them back anytime soon.
Decker Shado
I got a 3DS at launch, and the biggest problem I had was a lack of launch games I really cared about. The price cut is fitting, the new price being about the same as previous DS systems.. but that does bring out that the original launch price was obviously inflated due to initial praise over the glasses free 3d.
That being said, I don’t think the 3DS is dead, let alone Nintendo. The PS3 had a much more horrifying launch – aside of course from the one killer app Resistance. (the 3DS had SSFIV.. which everyone already played) and we all saw the “Is the PS3 a failure?” “Is Sony dead in the water?” come up left and right – and the PS3 sales struggled for a while. But now they’re back in shape, after price cuts and great games followed up the initial problematic period after launch.
So Nintendo gave us the price cut, and the “killer apps” are just around the corner. (finally) ..so I think the 3DS will bounce back – but not as much as the DS in popularity. the PS3 doesn’t own the market like the PS2 did – so I think the 3DS and Vita will compete more neck-and-neck the way the 360 and PS3 do today.
At least, that’s what I think.