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3DS price cut puts PS Vita 'in a tough position' - analysts

How will Sony react to Nintendo's aggressive pricing strategy?

Nintendo's decision to slash the price of the 3DS only six months into its lifecycle may have thrown a spanner in the works for Sony's PS Vita plans, according to a number of analysts.


BIlly Pidgeon of M2 Research told IndustryGamers he thinks Sony will have to carefully consider its Vita pricing ahead of the portable's expected launch later this year. "When Sony announced PS Vita pricing at $249.99, 3DS price had to come down," he said. "PS Vita pricing feels compatible with value now, but unless the economy improves more rapidly, a price cut should come sooner rather than later."

Jesse Divnich of EEDAR also said: "This price cut does put the Vita in a tough position. It all comes down to the content and if the Vita can deliver a library of high quality entertainment products, it should be able to thrive at the $249 price point."

Meanwhile, David Cole of DFC Intelligence suggested the early 3DS price cut suggest Nintendo's feeling the heat from Vita. "I just looked at [Nintendo's] revised financial forecasts and they are ready to take a hit. They are really being aggressive. It is very unlike Nintendo to be willing to take such a loss.

"I think what it says is that they really feel the heat from the Sony Vita. I see it as a move to protect their market share and position in handhelds. I would not call it desperation but more a very aggressive defensive action by the market leader to hold on to market position."

Earlier this week a Sony studio partner appeared to confirm reports that Vita's RAM was cut by the platform holder in order to make the device's price more competitive.

[ SOURCE: IndustryGamers ]