Nintendo to make loss on each 3DS after price cut

Nintendo 3DS - disappointing performance
Nintendo 3DS - disappointing performance

Nintendo's decision to slash the price of its Nintendo 3DS handheld console following disappointing sales will mean that the company will make a loss on each unit sold.

According to the Japanes arm of Bloomberg, Nintendo's radical price cut – which CVG ascertained was likely to be about a third off in the UK – means that the gaming giant is making a loss.

Microsoft and Sony both accept losses on the consoles that they sell, with game licensing meaning that they can afford to take a hit on the hardware because of the profits from the software.

Traditionally profitable

Nintendo has traditionally taken the approach that profit should be made on the hardware as well – something that served it well when the Wii became a massive seller.

Nintendo's quarterly results stated that just 710,000 of the latest handheld had been sold, has as many as its predecessors in the DS range.

The decision to bring about a significant price cut represents a risk to Nintendo, but even for those that are not a fan of the autostereoscopic screen the new price point means that other improvements – like the analogue joystick – make it an attractive proposition.

And you can always turn the 3D off.

Via CVG, AndriaSang and Bloomberg Japan

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Patrick Goss

Patrick Goss is the ex-Editor in Chief of TechRadar. Patrick was a passionate and experienced journalist, and he has been lucky enough to work on some of the finest online properties on the planet, building audiences everywhere and establishing himself at the forefront of digital content.  After a long stint as the boss at TechRadar, Patrick has now moved on to a role with Apple, where he is the Managing Editor for the App Store in the UK.