Nintendo reports loss, blames slow 3DS sales

There's a clear reason why Nintendo do drastically dropped the price of the Nintendo 3DS. It, simply put, has not been performing well. According to analysts, the price drop will mean that Nintendo will incur a loss on every glasses-free 3D system sold.

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There's a clear reason why Nintendo so drastically dropped the price of the Nintendo 3DS. It, simply put, has not been performing well. In fact, it's been lagging behind Nintendo's "last generation" offerings, with DS and Wii hardware sales easily besting Nintendo's newest effort.

"The Legend of Zelda: Ocarina of Time 3D was launched and favorably received, but Nintendo 3DS had few other hit titles," Nintendo admitted in its latest earnings report.

The 3DS sold 0.71 million units in the last quarter, easily trailing the DS family's 1.44 million units. Wii hardware sold 1.56 million units.

Nintendo is blaming the strengthening yen, and research and development for the upcoming Wii U as factors for the poor performance this quarter, with operating losses at 37.7 billion yen (about $480 million).

Although the 3DS has been slow to attract a large audience, Nintendo believes the price cut will dramatically accelerate sales. The company is maintaining its forecast of 16 million 3DS system sales by the end of its fiscal year in March 2012.

According to analysts at Bloomberg Japan (via Andriasang), the price drop will mean that Nintendo will incur a loss on every glasses-free 3D system sold--a rarity for the company, which typically sells hardware for a profit. The move was called "necessary in order to improve fiscal performance next year and beyond."

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  • reply
    July 28, 2011 10:00 AM

    Andrew Yoon posted a new article, Nintendo reports loss, blames slow 3DS sales.

    There's a clear reason why Nintendo do drastically dropped the price of the Nintendo 3DS. It, simply put, has not been performing well. According to analysts, the price drop will mean that Nintendo will incur a loss on every glasses-free 3D system sold.

    • reply
      July 28, 2011 10:04 AM

      owned

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      July 28, 2011 10:05 AM

      You mean a system where there are only 3 compelling retail games isn't selling well? I am so super duper shocked

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        July 28, 2011 10:43 AM

        It hasn't stopped them before.

      • Zek legacy 10 years
        reply
        July 28, 2011 11:21 AM

        Same thing happened to the DS and it eventually sold gangbusters. I think the main difference here is smartphone competition and the fact that the 3DS hasn't set itself apart that well.

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      July 28, 2011 10:06 AM

      Why does nintendo keep releasing systems with no games? Why not plan a solid set of 10 games and make sure the third parties are ready to go?

      I mean why would I buy a 3DS, for Zelda?

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        July 28, 2011 10:48 AM

        You just described every system launch ever. They are always slow to begin.

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          July 28, 2011 10:55 AM

          Did the Wii ever begin? I'm still kind of waiting

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            July 28, 2011 11:02 AM

            [deleted]

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              July 28, 2011 11:05 AM

              What I wanted from the Wii was plenty of games like Wii Sports / Resort. You know, the whole reason I wanted the system. I mean I love Smash Bros, Mario Galaxy et al....but those feel like games that don't *need* to be on the Wii. Where are all the amazing motion controlled FIRST PARTY games? Far too much shovelware.

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                July 28, 2011 11:18 AM

                You should check out Wii Play Motion. It flew under everyone's radar and has the spiritual successor to Monkey Target built in.

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      July 28, 2011 10:16 AM

      Wait, they didnt blame piracy, weird.......... I thought that was the normal scape goat when something that suck's fails.

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        July 28, 2011 10:42 AM

        You can't really blame piracy for a console failing, just a game, hardware is much more difficult to fake and distribute.

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          July 28, 2011 10:48 AM

          Never let logic get in the way of nerd rage.

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        July 28, 2011 10:48 AM

        There would need to be some games to pirate first off.

        3DS was actually the first hardware to ever be launched with negative games. When you buy it, you have to trade in a bunch of games you already owned to afford it.

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      July 28, 2011 10:21 AM

      When was the last time Nintendo reported a loss?

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      July 28, 2011 10:27 AM

      I don't think they will incur a loss at 169$. They were extremely greedy and will now go back to a normal level of profit per unit sold.

    • reply
      July 28, 2011 10:46 AM

      [deleted]

      • reply
        July 28, 2011 10:54 AM

        You'll be getting 20 free games, so~

      • reply
        July 28, 2011 11:00 AM

        Well, we now get 20 Virtual Console titles for being early adopters. At least it's something =\

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        July 28, 2011 11:12 AM

        Hey..but free games!!! And you had the a 3DS early.

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        July 28, 2011 11:12 AM

        Hey..but free games!!! And you had the a 3DS early.

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      July 28, 2011 11:23 AM

      On a side note, I think a "hungry" Nintendo is better for gamers. I hope this makes them plan the Wii U carefully, and hopefully targeted to "core" gamers.

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      July 28, 2011 2:00 PM

      "Although the 3DS has been slow to attract a large audience, Nintendo believes the price cut will dramatically accelerate sales. "

      Nope. You still have to have games for it. Give that a shot Nintendo.

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      July 28, 2011 6:22 PM

      I bet if they'd had a strong first party title launch it would have done alot better, but everybody would have complained about the lack of 3rd party games.

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        July 28, 2011 8:08 PM

        I agree. If they'd have launched with Mario Kart I'd already have one.

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