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Nintendo to make a loss on every 3DS sold

Drastic price cut sees Nintendo forfeit its usual hardware profits

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.

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But this is a practice Nintendo will forfeit with the 3DS, according to Bloomberg Japan (via Andriasang), who reports that Nintendo will indeed be making a loss on every 3DS sold after it introduces the drastic price cuts announced today.

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.

[ SOURCE: Andriasang ]

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