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[specialguy]

Given the hardware, I doubt much of a loss or for long.

 

[Staab]

Pretty shocking that they would make such a large price cut, I was totally expecting a -20% around september but that's kind of huge...

 

[1-D_FTW]

iSuppli estimated it was 108 or something like that.




http://www.andriasang.com/e/blog/2011/07/29/3ds_losses/?utm_medium=twitter&utm_source=twitterfeed

But those are just a bunch of analyst comments. Nintendo losing money this past quarter was clearly related to inventory glut. I don't see any indication they can't break even, turn a modest profit even at 170.

 

[Scythian]

Meanwhile, in Scythian's country the 3DS is still $400+ USD
I want to buy your console Nintendo, I really do, but not at that price.
If this price drop gets here I'll be all over it.

 

[Htown]

Holy shit man. Things must be pretty awful for them right now.

This year has essentially been garbage as far as their game output goes. I'm entirely unsurprised, and I'm not sure what they expected.

The most exciting piece of software they've put out on 3DS is a remake of an older game. Remakes should be quick little money making updates to get a bit of money from fans, not the centerpiece of your hardware's lineup. It's like if the God of War remakes Sony came out with were the biggest part of their 2009 lineup.

And Wii software has been literally nonexistent. Mario Sports Mix and Wii Play Motion are literally the only things they've put out on Wii this year, and we're about to hit August.

Basically, Nintendo has been fucking up all year, and if their lack of success lights a fire under their ass so they start coming out with cool stuff again, good.

 

[Maxim726X]

2nd. GCN was sold at a loss for a while when it dropped to $99.

We all remember how well that turned out...

How many systems that sell at a loss end up being successful? None?

 

[Data West]

We all remember how well that turned out...

How many systems that sell at a loss end up being successful? None?

PS3 was sold at a loss for quite a while

 

[DangerousDave]

Wait what? Wasn't it deduced somewhere that 3DS manufacturing costs are around $110 per unit?

Well, you have to count also distribution, packaging, taxes and shop part of the revenues. When you are buying a console at $170, the console manufacturer don't get $170 as revenues.

 

[RedSwirl]

This year has essentially been garbage as far as their game output goes. I'm entirely unsurprised, and I'm not sure what they expected.

The most exciting piece of software they've put out on 3DS is a remake of an older game. Remakes should be quick little money making updates to get a bit of money from fans, not the centerpiece of your hardware's lineup. It's like if the God of War remakes Sony came out with were the biggest part of their 2009 lineup.

And Wii software has been literally nonexistent. Mario Sports Mix and Wii Play Motion are literally the only things they've put out on Wii this year, and we're about to hit August.

Basically, Nintendo has been fucking up all year, and if their lack of success lights a fire under their ass so they start coming out with cool stuff again, good.

What have their dev studios been doing?! The answer better be "getting Wii-U software ready".

 

[Nuclear Muffin]

We all remember how well that turned out...

How many systems that sell at a loss end up being successful? None?

PS1? PS2?

 

[Auto_aim1]

It's necessary for Nintendo to revive interest in the 3DS and build momentum, so the drastic price cut was needed. Also, I don't think they are taking a huge loss with each hardware sold.

 

[ZedIndyLil]

Really remarkable.

Is anybody using the term "panic" with Nintendo now? For a company that is generally very conservative otherwise, a drastic move like the price cut is a little troubling, like they aren't sure what the heck they're doing.

 

[DonMigs85]

Their lack of compelling software and a huge desire to make fat profits on hardware sales and shovelware licensing fees alone finally came back to bite them in the ass. This is the wake-up call they've needed for a while.
And I still think the DSi cut into the 3DS' thunder before it even came out. They should never have bothered with it.

 

[lupinko]

Wow, is this a first for Nintendo?

Yeah, I'm wondering this too. Don't they always make a profit with hardware?

 

[rpmurphy]

What have their dev studios been doing?! The answer better be "getting Wii-U software ready".

3DS, Wii, and Wii U games. And DS.

 

[French]

 

[Father_Brain]

Anoop normally gets this stuff right, but can a Japanese-speaker here verify that these paragraphs confirm a per-unit loss?

７月28日（ブルームバーグ）：任天堂は28日、今期（2012年３月期）業績予想を下方修正、純利益予想を従来の２割弱となる200億円に減額した。２月末発売の携帯ゲーム最新作「ニンテンドー３ＤＳ」の販売減速で値下げに踏み切るのが主因。同社の純利益は1986年８月期（当時）の167億円以来、四半世紀ぶりの水準に逆戻りする。
　　同社は今期、３ＤＳ販売本格化で３年ぶりの増益を図る方針だったが、発売からわずか半年弱で値下げを強いられた。国内の場合、８月11日に希望小売価格を１万円下げ、１万5000円とする。値下げで年間の世界販売予想は従来の1600万台を維持する見込みだが、従来型のＤＳや据え置き機「Ｗｉｉ(ウィ&#12540」の販売予測は減らした。
　　28日に大阪市で会見した岩田聡社長は３ＤＳ値下げについて、販売低迷打開に「相当思い切った手段が必要と考えた」と説明。値下げ後の価格ではハードの販売だけでは赤字になるとした上で「いま手を打っておかないと来年以降の業績に明るいものが見えてこない」と強調した。

 

[Effect]

Looks like they're genuinely worried about where they stand. If it's anything like the Gamecube era, this will be very good for gamers.

Seriously. This can't be said enough. It's a weird situation overall. They are at their best when they are down or backed into a corner. The success of the DS and the Wii went to their heads. Running off of brand will only get you so far. I think it actually hurt the 3DS as well because Nintendo did nothing to show that the system was brand new when marketing it and not simply another revision. They still haven't and they need to do that NOW.

If they are taking a loss on the hardware now then I would guess developers should be able to get a lot more out of the system then what has been hinted at now. That cost has to have gone somewhere and I doubt it's all just for the 3D. I assume specs of the system where theorized in the past but could those have been wrong? Is so by how much? Anyone?

3DS, Wii, and Wii U games. And DS.

DS. Doubt it. Wii? Nope. Wii U most likely but they had better be working on 3DS games. Outside of Kid Icarus, Mario 3D, and Mario Kart the rest have been done by outside studios or were originally DS games just up-ported to the 3DS. Even Kid Icarus from Project Sora isn't in Nintendo proper.

 

[Unconditional]

this seems like a first.

 

[Azure J]

Woke up and heard my brother talking about a 3DS price drop. I fucking laughed him out of the room, only to boot up GAF and lo and behold, the most epic price drop I've ever seen on a console (to my active knowledge) in years. Hooooly fuck. :O

 

[Ulairi]

but but but some website said it's only $107 to make! but but but

 

[Regulus Tera]

The real question is whether this loss is going to eat deeply into the warchest accumulated during the last decade.

 

[Nizz]

I've been living under a rock when it comes to the 3DS, how much exactly is it now in the US?

 

[ShellyDeKiller]

Maybe this will shut up the people saying 3DS costs nothing to make and Nintendo overpriced it just because.

 

[zomgbbqftw]

I've been living under a rock when it comes to the 3DS, how much exactly is it now in the US?

$169

 

[Krev]

While the picture is funny, weren't you saying that that $169 was too expensive and it should be $99 in another thread?

 

[sixteen-bit]

Maybe this will shut up the people saying 3DS costs nothing to make and Nintendo overpriced it just because.

iSupply on blast.

 

[Dystify]

I've been living under a rock when it comes to the 3DS, how much exactly is it now in the US?

Now it's $249. It will be $169.

 

[Cheesemeister]

Anoop normally gets this stuff right, but can a Japanese-speaker here verify that these paragraphs confirm a per-unit loss?

値下げ後の価格ではハードの販売 だけでは赤字になる

Following the price cut, sales of the hardware will go into the red.

but but but some website said it's only $107 to make! but but but

Manufacturing, marketing, R&D, shipping, retailer markup...

 

[LeleSocho]

Sincerely i don't believe this at all
how could the 3ds at 179$ be sold at loss if the ipod touch (more powerful and expensive hardware) is sold in profit at 229$?

 

[Nizz]

$169

Now it's $249. It will be $169.

Thanks. I just saw the other Nintendo threads. God damn, that's a hell of a price drop!

 

[Kintaro]

I woke up thinking that either Nintendo was making a killing on the 3DS at $250 or they're not taking a hit. Guess now we know.

Not lowering the price of the DS series still seems weird. It's the same price as the DSi XL... seems weird to me.

 

[Krev]

Nintendo looking forward to losing a lot of money this holiday season!

 

[Nuclear Muffin]

Sincerely i don't believe this at all
how could the 3ds at 179$ be sold at loss if the ipod touch (more powerful and expensive hardware) be sold in profit at 229$?

Because it doesn't have more powerful and expensive hardware. 3D Paralax Barrier screen is bleeding edge tech and the 3DS GPU/CPU is no slouch (not if it can pull off RE: Revelations/Mercenaries and SSF3D visuals, which are well beyond Infinity Blade)

 

[OrangeYouGlad]

Sincerely i don't believe this at all
how could the 3ds at 179$ be sold at loss if the ipod touch (more powerful and expensive hardware) be sold in profit at 229$?

They have 3D screens now?

 

[PdotMichael]

Wait what? Wasn't it deduced somewhere that 3DS manufacturing costs are around $110 per unit?

manufacturing cost only

you have to add stuff like retail magin

 

[theBishop]

I don't see how that's possible.

 

[Takao]

Good, you guys deserve it for cutting early adopter's legs off not even 6 months after launch.

 

[jett]

I honestly find it hard to believe that Nintendo is selling the 3DS at a loss. BTW has there been a quicker price drop for a major console/handheld?

 

[DonMigs85]

Because it doesn't have more powerful and expensive hardware. 3D Paralax Barrier screen is bleeding edge tech and the 3DS GPU/CPU is no slouch (not if it can pull off RE: Revelations/Mercenaries and SSF3D visuals)

It's still rather old repurposed tech though, and not particularly light on the battery. But indeed, the screen is still cutting-edge. You don't see 3D tech in many phones yet either.

 

[RPGCrazied]

Virtual Boy all over again? I can't say I'm all that interested in the system. Kingdom Hearts is about the only thing I was interested in, but they need to get that series back to consoles, its had a long enough run on handhelds.

 

[Jinfash]

Paging Vinci.

Spoiler

Still hard to believe.

 

[Nintendo Ate My Children]

Is this a first for Nintendo? Just when I think I have a company figured out, they go and do something totally unexpected.

Nintendo actually pioneered making losses on hardware in order to increase software sales with the NES. It's only recently that they turned away from that. /historynerd

 

[Zoramon089]

manufacturing cost only

you have to add stuff like retail magin

That's why I always laugh at people who simply post ignorant things like "Well, I can build that for x amount so that's the price point they can sell it at to make a profit!". It's like they're ignoring everything else involved in actually selling a product that could incur additional costs

 

[Malio]

B.S. Companies crying poor again. /rolls eyes

 

[Lonely1]

I honestly find it hard to believe that Nintendo is selling the 3DS at a loss. BTW has there been a quicker price drop for a major console/handheld?

Right now? No. But after the $169 price drop?

 

[EteRnal PAL]

Wow, is this a first for Nintendo?

My exact thoughts. Wow...

 

[Krev]

Virtual Boy all over again? I can't say I'm all that interested in the system. Kingdom Hearts is about the only thing I was interested in, but they need to get that series back to consoles, its had a long enough run on handhelds.

Knowing Square, I'm wondering how long it will be until they announce it's getting a day 1 Vita port.

B.S. Companies crying poor again. /rolls eyes

Uh, more like crying rich. A poor company could never do this.

 

[Phoenix_Apollo]

So does this mean that they'll start coming up with a buttload of software now? I kinda hope so. If they could give us what they gave the Gamecube and DS combined, that'd be pretty sweet.

 

[Averon]

The non-glasses 3D screen must be very expensive for Nintendo to be in the red at $170.