While Sony and Microsoft systematically sell their new consoles at a loss - initially at least - Nintendo has always resisted such tactics, instead balancing production costs to maintain a profit margin on its hardware.
As reported earlier, Nintendo will chop around a third off the price of 3DS worldwide next month, following lacklustre sales in the early part of 2011.
3DS' RRP will drop from $249 to $169.99 in the US on August 12. A cut to the European trade price will come on the same day. Nintendo is yet to confirm the exact drop for the EU, but has told CVG that it will be "around a third".
Australia will also benefit on August 12, with 3DS dipping from $350 to $250. Meanwhile, Japan will see a price drop on August 11 - to 15,000, down from 25,000.
The firm also announced a '3DS Ambassador' program that will award early adopters 20 free games in an effort to prevent them from 'regretting' purchasing the console early.
Comments
38 comments so far...
sweatyBallacks on 28 Jul '11 said:
Initially charging £200+ for the 3DS was a scandal. Outrage.
The tech inside is worth about £50. The processor is only a small upgrade from the ones used in the Super Famicom.
Sorry
RustySpoon80 on 28 Jul '11 said:
So the question is why? Why do this now? Why not wait until just before PSV?
SpandexArmstrong on 28 Jul '11 said:
Reality has hit Nintendo HQ it seems. They are doing the right thing here, egg/omlette etc..
Get Luigi's Mansion 2 out & you've got another sale from me! (i traded my launch 3DS a month ago)
I hope this bodes well for the WiiU being sold at a decent price come launch.
SpandexArmstrong on 28 Jul '11 said:
Reality has hit Nintendo HQ it seems. They are doing the right thing here, egg/omlette etc..
Get Luigi's Mansion 2 out & you've got another sale from me! (i traded my launch 3DS a month ago)
I hope this bodes well for the WiiU being sold at a decent price come launch.
alan666 on 28 Jul '11 said:
NEO_SUPERMAN on 28 Jul '11 said:
They won't be making a loss.
It's a simple marketing ploy to make the 3DS seem like better value.
It'll still be to overpriced after the drop.
I do kinda fancy one though.
Agent75 on 28 Jul '11 said:
Yes, Nintendo should be ashamed for setting such a high price at launch, but they always stress that it's up to the retailer to set the price. I'd only buy one if it was £149 with Mario Kart....
Lady Gagagged on 28 Jul '11 said:
The lacklustre sales could be dramatically improved with some software that felt like must have. I've put off buying one until an essential game is released but that seems so far off. No one would buy a games console that doesn't have any games.
humanhand on 28 Jul '11 said:
I bet within a year they will have a different model that they won't lose money on.
Crossblade_2000 on 28 Jul '11 said:
Makes me think the PS Vita is more impressive than I suspected, and I initially thought it was pretty impressive anyhow, but now Nintendo have convinced me to seriously consider getting a PS Vita. :p
There's also the distinct possibility that mobile phone apps might have affected the handheld console market more then we might wanna admit, but that's a really sucky possibility. Shovelware erodes consumer interest, it doesn't build it.
bazzatuk on 28 Jul '11 said:
I'm with you. Price is a major factor, but price + no games = no purchase. It's like a new car with a new form of petrol that nobody sells yet - pointless.
martez87 on 28 Jul '11 said:
Will likely pick one up now.
I was shocked to see the poor sales from the 3DS, prior to launch I was predicting sales on par with the original DS. I really think that they have shot themselves in the foot a bit and confused the market. I'm not convinced your average person knows that this is a brand new console and not just another DS model. You can see this in some shops, like Tesco for instance, the 3DS games are shelved and intermingled with the original DS games. Not to mention at first glance the system looks similar.
Another problem was that the system was clearly rushed out the door before any games were ready. If they released a Mario or Pokemon game at launch this thing would be flying off the shelves.
The DS was by far my favourite handheld ever so I'm hoping that they can repeat there success and get some good games out.
P.S. LUIGI'S MANSION 2!!
TheLastDodo on 28 Jul '11 said:
Theres such an obvious gag to be made from that header.
cult on 28 Jul '11 said:
According to FlacidDonkeyGuy MS and Sony sold the consoles at profit.
Its good to see the facts in print as I was starting to take everyone's opinions seriously at CVG.
I wonder what else he gets wrong though?
Nintendo announce wii u and share value hits 5 year low.
Nintendo announce 3DS price drop and shares hit a new 5 year low.
Its not looking good in the mushroom kingdom is it?
Nintendo is going to have prove itself at the Tokyo Game Show to both consumers and investors this year. I personally can not see that happening.
Developers need to move from 'liking' to actually supporting the company with 'product'. I can not see epic,rockstar or 2K surprising us with a 9 month away exclusive.
Unless the wii u is future proofed against possible xbox 720 or PS4 in some way Nintendo will end up a whole generation behind before MS and Sony even move ahead one more.
I don't like to admit it but Pachter saying he will be right about the wii u launch being a failure may just be true.
Its time for Nintendo to speak out.
ranaraptor on 28 Jul '11 said:
Nintendo's handheld gaming model is a relic of platform. Casual punters don't wanna carry around a headache inducing extra piece of hardware along with their 99p a game iPhone 4 or iPad.
Unless Nintendo changes is pricing model to reflect changing attitudes to mobile gaming, they're going to be playing catch-up for many years.
Also, to the uninitiated, the 3ds proposition and look of it isn't to dissimilar and experience to the original ds.
No wonder folks aren't buying it. A price drop will have little effect to offset Nintendo's decline in the handheld sector.
Apple and Android will be wiping the floor with them
Lady Gagagged on 28 Jul '11 said:
I'll admit from the off that I've never played a game on a phone unless it was built in but do 99p apps offer the depth of games like Mario 64 DS or Minish Cap? I appreciate they might be fun but I sometimes like substance to my games.
liveswired on 28 Jul '11 said:
Initially charging £200+ for the 3DS was a scandal. Outrage.
The tech inside is worth about £50. The processor is only a small upgrade from the ones used in the Super Famicom.
lol - well I wouldn't say scandal
- it's a massive upgrade from the DSi - 3ds can now emulate Super Famicom games! 
It's about 2x (possibly more) more powerful than the Wii, Dual screens (one widescreen 3d at obviously) 128mb Ram (same as Vita) backwards compatibility built in, gyro, touch, analogue, 3 cameras. . .I could go on. Though features alone are pretty impressive!
Lady Gagagged on 29 Jul '11 said:
It has everything except the kitchen sink, oh, and games. This is worrying as Nintendo usually stop supporting their consoles twelve months or so before releasing a corking game and the next console. Luigi's Mansion will launch around the same time as 3DSi then?
Crossblade_2000 on 29 Jul '11 said:
I agree that Nintendo should have done more to differentiate the 3DS from their previous handhelds. At least styled it a little differently.
It's gonna be difficult to match the model of iPhone/Mobile gaming, but if they use the e-store to offer games at various price points they may be able to satisfy both casual and hardcore players of differing age groups. And I'm not just talking back catalog, they need developers to commit to new stuff. Maybe even try the Infinity Blade model, where you pay for content as you play. But I do feel like they need more than just relying on physical full price retail games, however an important component those titles may still be.
liveswired on 29 Jul '11 said:
I have to agree. Though while there are plenty of 'gamers' games on App store - they should maintain a low price due to the controls and battery death within an hour. If you haven't guessed - I have an iphone 4 and like most owners have tonnes of cheap Apps but rarely play them - controls are poor on most games, sure they are workable - but games need more than that. Covering the screen is definitely a large hindrance. Great graphics - but if your playing a 3D title you'll be lucky if you see the battery last an hour. idevices are fantastic media kits and phones, I'm always listening to music for example but definitely not ideal gaming platforms.
shogunreaper on 29 Jul '11 said:
Thought i read awhile ago, like before it was launched that the 3DS only cost like $99 dollars in parts.
ricflair on 29 Jul '11 said:
If it was $99 in parts, then building there's production, shipping, taxes, retailer profit and tax they could conceivably be making a loss.
I can't think of too many consoles that had amazing software lineups within the first four or five months.Handhelds don't have the same luxury of top multiplatform games to fall back on like home consoles do...
liveswired on 29 Jul '11 said:
I had that exact same thought as you until I took the plunge and bought a 3DS, and it even took me a while before my mentality changed. As an iphone 4 owner I have a tonne of 99p apps - do you know how much time I have played since christmas - you'd be pushing a few hours - and that includes all the top 'gamer' games including NFS, NOVA 2, Dead Space, Real Racing, FIFA, - I could go on and on and on.
why? well as you know idevices only last about one hour if your lucky on a 3D title and the controls suck so bad they put you off playing, did I mention your thumbs and fingers take up half the screen?
Those are just three big fat reasons why App games should maintain a low price - to offset their weaknesses. 
Sony and Microsoft have similar pricing and release schedules to Nintendo and I agree with them. You spend a bit extra on a game, the developers get more money - especially great for Indie devs, encourages you to play the game more, you get better controls, a sensible release schedule where every developer has a chance for their game to get noticed. You appreciate what you purchase - unlike in app store.
eShop is a fantastic platform - and despite a slow start it's really kicking off and finally won me round. There is a load of excellent dsi ware you can purchase too (I never knew there were an DSI ware games before) - which I have spent more time on than any of the best App store 'ware' this last few years.
I'm not p**sing on Apple IOS or Android here - the iphone 4 is a fantastic piece of kit, IOS is astonishing - same goes for Android - both incredibly intuitive multimedia platforms whereas the 3DS OS is an incredibly intuitive gaming platform.
Judging by the 1000's of reviews some games are getting on the Nintendo uk eShop I'd say it's not doing too badly
. A race to the bottom will only result in one thing - the industry sinking to the bottom! 
djhazardous on 29 Jul '11 said:
I wonder how much it will cost by the time a game worth buying comes out.
TOKEN on 29 Jul '11 said:
Just been reading the sun website and their claiming £100 by christmas,could this kill the 3DS even more so,i hope Ninty get the wii U spec right or we could see mario on xbox or playstation?
only_777 on 29 Jul '11 said:
Its not a great CPU I know, but tbh most of the work is done by the GPU.
PMIKE5 on 29 Jul '11 said:
As soon as there are some great NEW games, then I'll get one.
No more brain training games, pony training games or bra training games.
Wait, what?
03b2wgm on 29 Jul '11 said:
Personally, I feel it was entirely worth shelling out £200 just to play Zelda.
starvinbull on 29 Jul '11 said:
Trust me you are missing nothing. Most disappointing hardware launch of my life.
ranaraptor on 29 Jul '11 said:
All good points - I have an iphone and using a touch screen does suck indeed.
Im more inclined to get a Vita than a reduced in cost 3ds.
Dont get me wrong, I love Nintendo, but they're not moving with the times. If they don't act quick, they're geoing to suffer. You only need look at their massive fall in profits - they f*cked up their handheld strategy.
verynaughtyboy on 29 Jul '11 said:
I think it's fair to say that the Wii and DS have both been supported in the majority by casual gamers, your gran and the like. Nintendo don't have the full support of their long time fan-base anymore, people like me. I worry with any new Nintendo hardware that it will offer very few proper gaming experiences. Sure, Zelda 3DS looks good, but I've got Ocarina of Time and Majora's Mask on my N64 and Gamecube. There is nothing exclusive to the 3DS that makes me want to go out and buy it and I worry that although there will be a few good games eventually, these aren't enough to justify buying it. I'd rather put the money toward new PS3/360 games or a Vita.
The casual gamers that bought into the DS are perhaps less likely to support the 3DS. Either the novelty of gaming has worn off or they can get the experiences they want on their phones or through Facebook games etc. They probably don't see the point in buying a new console when they can get what they want through these mediums.
AJDarkstar on 29 Jul '11 said:
So Nintendo needn't have released the N64 or GameCube? Factor 5 could have made Rogue Leader for the SNES? Scandalous!
You, sir, are a moron.
Lady Gagagged on 29 Jul '11 said:
If there are games on the likes of the iPhone that appeal to gamers that are accordingly priced due to the limitations of the hardware then you have Nintendos solution to their problems in a nutshell.
1 Release games that appeal to gamers.
2 If the battery life of the 3D tech renders the main selling point of the 3DS, it plays games in 3D, then don't sell the software at an exaggerated price.
3 Don't rest on your laurels, it is an amazing piece of tech, but with so many versions of the DS available you need more than advertising to sell its unique points. Apple release their products with what I regard as alarming frequency but they are in the public conciousness. The new product is newsworthy.
horngreen on 30 Jul '11 said:
I'm not sure it's 3D that's helping or hurting Nintendo. I think it's what feels like WAY TOO many options when it comes to handheld gaming systems. I'm not even including smart phones in this idea. I own only the original gameboy and my iphone which I bought primarily for phoning
I have no idea how many handhelds are on the market now! It feels like a new one comes out every year or so. I don't even know what Sonys last one was called and if it is indeed it's newest one. INSANE!
unmannedrobot on 30 Jul '11 said:
Well I'm so sorry you bunch of would be " Patchers' " but Nintendo is akin to X,mens Juggernaut, their unstoppable!
Mmmmgrolsch on 30 Jul '11 said:
I think Ninty have blead the DS dry with to many updates now most people just see this as a DS with a 3D screen so whats the point in wasting all that cash on the same thing. Thats why I think the 3DS is gonna fail, along with the wii-u although I think the wii-u has a better chance of succeeding that the 3DS.
I think the name is also a big factor. They should have changed the name entirely.
stormchasing1000 on 30 Jul '11 said:
Everybody is again writing off nintendo with their handheld and the next wii-u, Time and time again people have been drooling for nintendo to fail so "mario ends up on playstation" its never going to happen,i am one of those long term nintendo fans that has stuck with them since end of nes early snes.because i beleive in the way the make games for all people mostly multigames its great,and if some great 3ds games coming out the Christmas rush and games like mariokart/marioland will storm the sales around the world.and they are sitting on a wedge of profit from the ds and wii don''t forget which will easily tide them over until the next around of consoles.the day nintendo die as far as i am concerned gaming console die with it.
stormchasing1000 on 30 Jul '11 said: