Bloomberg Japan reports today that the new 3DS price point means Nintendo will incur a loss on every system sold. At a press conference in Osaka today, Nintendo CEO Satoru Iwata justified this by saying that such major moves were necessary in order to improve fiscal performance next year and beyond.
Nintendo slashed the price of the 3DS earlier today worldwide. In Japan, the system was cut from its launch price of ¥25,000 to ¥15,000. Early adopters who paid the initial price will be given access to 20 free Famicom (NES) and Game Boy Advance Virtual Console games, some exclusively.
In addition to the price cut, Nintendo announced lowered earnings targets for the year. SMBC senior analyst Eiji Maeda told Bloomberg that 40% of the lowered revision was due to the 3DS price cut. Securities Japan analyst Masayuki Ohtani expressed surprise at how quick the price cut came.
Ohtani also suggested that investors might rush to sell Nintendo stock, although he doesn't believe the stock will drop below 10,000 yen. Nintendo stock ended the day at 14,000 yen, up 0.1% from the day prior. On the 27th, one day before the price cut and earnings report announcements, the stock had temporarily dropped to 13,770 yen, its lowest point since December 2005.[/p]
Wow
Source
Japanese Source
Nintendo slashed the price of the 3DS earlier today worldwide. In Japan, the system was cut from its launch price of ¥25,000 to ¥15,000. Early adopters who paid the initial price will be given access to 20 free Famicom (NES) and Game Boy Advance Virtual Console games, some exclusively.
In addition to the price cut, Nintendo announced lowered earnings targets for the year. SMBC senior analyst Eiji Maeda told Bloomberg that 40% of the lowered revision was due to the 3DS price cut. Securities Japan analyst Masayuki Ohtani expressed surprise at how quick the price cut came.
Ohtani also suggested that investors might rush to sell Nintendo stock, although he doesn't believe the stock will drop below 10,000 yen. Nintendo stock ended the day at 14,000 yen, up 0.1% from the day prior. On the 27th, one day before the price cut and earnings report announcements, the stock had temporarily dropped to 13,770 yen, its lowest point since December 2005.[/p]
Wow
Source
Japanese Source