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Nintendo slashes 3DS price after first-quarter loss

Nintendo 3DSFaced with its first-ever quarterly loss, Nintendo has cut the price on its slow-selling handheld gaming device and reduced its profit forecast for the upcoming year.

The Nintendo 3DS price tag has been dropped to around $170 in the U.S. — a major reduction for a device that only hit the market a few months ago.

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According to company financial reports, Nintendo recorded an operating loss of 37.7 billion yen for the April-June quarter, giving the Japanese company its first quarterly loss since it began reporting quarterly earnings in 2003. The loss is blamed on poor sales of the 3DS, which has been heavily criticized for having a limited library of games available on (and after) its launch.

Industry analysts have been worried for some time now that the company was faced with a tough challenge now that many consumers are getting their games online or on their smartphones.

In response to the quarterly loss, Nintendo reduced its profit forecast for the upcoming year to 35 billion yen — a mark that gives the company its lowest profits since 1985. The company’s initial forecast was 175 billion yen.

However, it’s worth noting that Nintendo didn’t drop its estimate for how many 3DS units will sell in the upcoming year. The company still expects 16 million of the 3-D gaming devices to be purchased, and hopes the massive price cut will ensure that happens.

Rick Marshall
A veteran journalist with more than two decades of experience covering local and national news, arts and entertainment, and…
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