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Nintendo to lose money on all 3DS now following price cut?

Written by Andre Yoskowitz (Google+) @ 29 Jul 2011 16:21 User comments (5)

Nintendo to lose money on all 3DS now following price cut? Yesterday, we reported that Nintendo had announced a price drop for the 3DS handheld, following lackluster sales.
Starting August 12th, the console will cost just $170, down from $250.

Blaming himself for the poor sales performance of the device, president Satoru Iwata cut his salary in half, an almost unprecedented move for an exec.

Research firm IHS iSuppli recently did a component teardown of the console and found that the cost of parts was $100.71. Manufacturing costs turned the bill into $103.25. An old adage is that companies wholesale the items at half the retail price (unless you are Apple), so it can be implied that Nintendo is wholesaling the 3DS at $85 per unit, which would leave them with a glaring loss per sale.

This is of course speculation, however, as it is unclear what price Nintendo is and will sell their console for to retailers.

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5 user comments

130.7.2011 4:16

Way to speculate Andre Yoskowitz, using a four month old brake down on the 3ds and an adage (–noun- a traditional saying expressing a common experience or observation; proverb.) Saying yourself that a tech company by the name of Apple is the only company that breaks your adage, that breaks your adage. Here is a link with no spin. link
The spin in here is like Fox News.
The question mark does not save you.
Is Nintendo now losing money on all 3DS do to the price cut?
Now there's the title.

230.7.2011 9:13

I think that Nintendo in using glasses-less 3D was a little ahead of its time, as the technology still is not perfected yet. Actually the average consumer hasn't really caught on the 3D side yet, so why Nintendo did this is beyond me, but I will tell you this: When you put a warning label on a console or handheld console and tell your customers that it could potentially damage your kids or even your eyes or brain, decreased sales are going to happen. After all, you can't keep beating a donkey once it's dead right? They screwed themselves over by not overseeing the results, especially when they went to market this product to the consumers and rushed it out the door to gain a profit, imo.

Chance prepares the favored mind. Look up once in a while and you might learn something. - BLUEBOY

330.7.2011 10:53

well you can turn off the 3d mode. some games are release only for 3ds and not the regular ds handheld.

430.7.2011 15:24

3D is still extremely niche and most people don't care about it right now. 3DS came out too early and currently does not look like it will be nearly as successful as the DS.

I'm actually surprised that Nintendo released a new and unproven tech at a high price. Usually that would be something I would expect from Sony.

56.8.2011 6:24

Maybe they should be more original like in the old days, i mean we've all heard of consumerism but does anyone else find it somewhat irritating that a new ds is being released every bloody time the wind changes direction of late? Especially if you bought the last one. I mean not everybody leads the lifestyle of the execs. or the people shown enjoying these products in their ad campaigns. Give us more and you'll get more, rule of the universe.

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