Like many of you, I awoke to news yesterday that Nintendo had cut the price of the 3DS by an unprecedented 32% in one fell swoop. Wired Magazine called it a “fire sale.”
More unprecedented was how quickly it happened; only four months after the 3DS launch. (NOTE: Nintendo’s other slow selling systems, N64 and GameCube, saw 25% price drops six months after launch. Virtual Boy was pulled after less than a year.)
Said Nintendo President Satoru Iwata following the shocking news, “While it has happened in the past that a game system would be reduced in price in order to increase sales, it has never happened in Nintendo’s history that a console would be reduced in price so drastically and after less than six months.”
What does this all mean? I’d say it’s one of the following: A) No original games’aka 3D doesn’t add to gameplay like touch or motion does; B) Overpriced; C) Not as convenient as smartphone/tablet gaming; or D) All of the above.
My gut tells me it’s a mix of all of the above. After all, the 3DS has been criticized for the lack of original games, for being overpriced, and for not being as convenient, cheap, or as easy as existing but admittedly more shallow smartphone games.
In reading reactions across the web yesterday, the following comment really stood out: “My take on the price drop: Nintendo just admitted the death of dedicated handheld gaming.”
That may be premature. But it begs the question: Is this what happens when an industry begins dying’in this case the end of dedicated handheld gaming? Heck if I know. But it’s certainly a watershed moment. Not only for Nintendo, but for dedicated gaming in general.
No matter how you slice it, the intensity and speed of the price drop speak volumes. Maybe it’s just a minor setback on the road to a more palatable price and great original games. Maybe not. Maybe the inventor of handheld gaming got burned for good. Maybe not.
What do you think?
Dedicated gaming is far from over. It's not the raw power of the devices – smartphones have had enough cpu for gaming for a while now. It's the controls. IMHO you just can't replace an analog stick or buttons with a touchscreen.
I think this is just the VirtualBoy all over again. Nintendo and 3D is cursed.
More doom and gloom I hear?
Listen, here's what the price drop means: Nintendo got their head out of their ass and realized that the giant audience that bought the Wii wasn't the same type of gamer that jumps to purchase the 3DS. They realized they can't make a killing off each generation like they did with the Wii and DS. The price to manufacture a 3DS is $101. They're still profiting. Neither the hand held market nor the 3DS is dying/dead. Nintendo finally gets that profit may have to take back seat to quality.
$170 is competitive, $250 was not. The end.
Now, for the love of God, stop posting doom and gloom articles, especially regarding 1 day old news that has yet to propagate through to sales.
The 3DS is far better than Virtual Boy. Many reviewers said it; this system is great. Not only 3D, it takes the ds, adds streetpass, spotpass, gyro, etc. But is the market done with these dedicated handhelds? I'm not! And many gamers with me!
The 3ds will be fine with time, there just isn't enough games so nobody has one to show off. Once more people get to see it, it will grow in popularity. 3d is one thing but glasses free just feels soo much more natural, and this price drop will certainly help. As for me, I cannot wait for my free games! I am glad nintendo hooked up the people who stuck it out in the beginning amongst all the negative things that were being said about this system.
It has nothing to do with the death of anything. The price drop can be explained pretty easily: Nintendo has had massive success with the Wii/DS over the last 5 years, but when compared to the much more expensive competition, Nintendo debuted their systems at a great value price from the start. So they ended up thinking that they might have set the prices too low, missing out on potential profits.
So this time around Nintendo was testing the waters to see if they could price their system equally to the competition, and still remain competitive. But it didn't work, they realized pretty quickly that part of the appeal of the Wii and DS were their great value (all those casual players would not have bought the Wii/DS if they cost the same as the 360/PS3/PSP), so we get a price drop, and once again they are priced to sell.
And as for the death of dedicated gaming… not possible. People can only live on water and crackers so long, before they want some meat and potatoes.
Blake,
While I know you didn't make the original statement about the death of dedicated handheld gaming systems the fact that you are propagating such a statement makes you just as guilty as the person who initially stated it. To that end, here is something for me to say to help you realize how ludicrous such a statement is (especially, as pointed out, less that one day after the news has been released):
In late 2008 to 2009, truck sales were horrible. (This was due primarily to the cost of gas, which is tangentially related to the topic at hand.) During this time, GM ended up having a sale to the effect of "Buy one truck at sticker price, get a second of equal or lesser value FREE!"
Nobody ran around screaming about the death of the truck then, so why run around screaming about the death of a dedicated handheld gaming device now?
Lastly, I am still convinced that the slow-start of the 3DS is a combination of launch timeframe (time of year) and mediocre line-up. I bought one game at launch (Samurai Warriors Chronicles) and have logged so many hours on it that it's ridiculous. The main reason people really felt the line-up was lackluster was that, before the system was even released, the demoed and highlighted games like Kid Icarus: Uprising and The Legend of Zelda: Ocarina of Time 3D but then didn't have them at launch! The real lesson here, which I think Nintendo has learned and is fixing with the WiiU, is get publishers on board FOR LAUNCH! If you have 30+ games available (at launch) no one will care if half of them are just 3D "remakes," I promise.
Just my $0.02
3DS is a fantastic gaming system with the potential to provide immersive, deep games–with perfect controls–that can't be duplicated on iPhone.
Whether or not those games actually appear is in Nintendo's court. I'm optimistic. I bought 3DS for the unique experiences it offers and the promise of new Maro and Mario Kart. Nothing's changed, there.
Did Nintendo just admit that handheld gaming isn't as profitable as it once was? Yes, probably.
Did they just admit the death of handheld gaming? Oh please, is there really any need for such sensationalist headlines? Thankfully, the article content was far better than the headline (but that was never going to be a hard task)!
Infendo's a little hit and miss at the moment… sometimes, they get it spot on, and other times… well this is one of those other times…
Personally, I think part of the problem wasn't the price of the console (which was certainly very high in a world-wide recession), but the tired nature of the games. It really doesn't feel like Nintendo has anything new up their sleeves. Their premier mascot games all have that "been there, done that" feel to them, except that they now feature 3d graphics.
I know this goes counter to popular belief but I think that Nintendo should branch out to other types of software in addition to their tried and true games. I'm just as excited by the release of Inchworm animation and Art Academy and by the release of the various music-making titles such as Rytmik over any new game. As far as the 3D technology goes, I really like the idea of augmented reality and how it could really revolutionize gaming by placing the game in an actual environment.
As I mentioned in another article, I think the price drop along with lots of positive word of mouth will definitely improve Nintendo's sales, especially when approaching the holiday season.
The people I work with are now interested in buying a 3DS. The price was a barrier for them. They're excited for stuff like StreetPass, which I think Nintendo needs to implement in more than just Nintendogs and the StreetPass Plaza. As far as I understand, none of the slated games coming from Nintendo will include StreetPass features.
Look Blake….. I really hate to say it, but you guess have from a great Nintendo news site, to a gloom and doom site that for the most part never talks about actual news. In fact 90%, the news you report is days old; and you don't even post half of the actual news. Really, the only reason I've been subscribing to your RSS is to see when the next Infendo Radio comes out. (and Nintentunes or whatever). I'm not trying to beat up you guys, but with all the writers you have, this is really inexscusable. If you don't step it up, I'm sure you will more than me starting to complain.
I'm sure the 3DS will sell like hotcakes for its first holiday season. Everybody just needs to calm down. Nintendo just fixed one of the biggest problems for the device.
I'll be interested to see if the PS Vita has similar struggles. Seems to me it will be in the same boat as 3DS–overpriced, no new game-changing tech, and it can't compete with the convenience of mobile gaming. Why would people upgrade from their PSP's/DS's?
@RisnDevil Thank you! I agree with you, Blake, I still think you can turn this around. Quit being such a negative Nancy! Geez.
@LegendofPaperZelda I wish they'd make an awesome PaperZelda game… *daydreams* Agreed with you too sir, if it wasn't for the podcast, I'd have no reason to visit anymore.
@Blake… Where to start… You guys used to have a wonderful site, full of life, new prospects of gaming… Now, your turning into the naysayer's. These negative posts, in light of recent events is rather disheartening.. Don't you remember the original DS release? No games, for like.. a whole year! Yet, somehow, it managed to be a fantastic system! Selling millions and millions. You think any Nintendo fan would know they usually have a slower start. *sigh*
tl:dr.. If this site doesn't change for the better soon, I'm out. Intelligent passion for all things Nintendo……*hangs head in shame*
More like Nintendo just admitted that slapping 3D on a game and calling it new won't work anymore.
Why is Blake still given the freedom to post so much? Doesn't anyone else on the site notice he just posts the same annoying negative articles?
Besides, the success of Apple's App Store business model is greatly exaggerated. I think about 95% of people in that business is losing money right now.
1) I think Nintendo realizes they have to compete now. They've never really had to compete in the handheld market before. Unfortunately for them I don't think they realize they have to compete in the console markets with PC games again in addition to MS and Sony. I fear that this generation (the 3DS and WiiU) is going to be a lost generation for Nintendo.
2) Stockholders have moved the share price back to the pre-Wii price. That's not good for the current regime at Nintendo. They're going to need to be a lot more aggressive now and I think we're going to see some shake-up at the top of the company soon.
Those two things are going to put tremendous pressure on Nintendo in both the short and long terms. I know everyone thinks it's crazy to talk doom and gloom but they are really at a turning point. A couple failures back to back can put them in a Nokia like death-spiral. Actually Nokia is a great example. 4 years ago no one would have thought they'd be hemorrhaging money, market share, and core business. They were in great financial shape just like Nintendo and all it took was someone to disrupt the status quo and they've been handed their bum. Nintendo could be in the same position if this very generation (3ds and WiiU). We'll see, I'm hoping for a new main franchise that puts Nintendo back on top in software and a WiiU that doesn't make the pricing mistake of the 3DS.
I believe the reason for the price drop is because they are trying to compete with the PS Vita.
So the only thing they admitted was that the 3DS needs to be lower in price to be more competitive with the Vita when it is released.
I will admit though, the system was a bit overpriced at $250.
Portable game is no where near death. Several reasons:
1) As Chris stated in the first post, it has no tactile controls. I don't really like to play without buttons, and a drawing of a button in the screen really means nothing. The XPeria Play is the best example of what a phone should do to become competitive, but it has other problems.
2) battery. A 3DS can run out of battery, and it will be OK. But if my cellphone runs out of battery, I will be pissed because I can no longer make or receive calls. So I rather have a dedicated handheld besides my portable phone.
The reason Nintendo reduced the price of the 3DS is because it was grossly overpriced from launch. People do like their games and devices, but they also know how much certain things value. The device has several flaws:
– 3D is not cherished by many, and it should not have a higher price tag.
– battery runs out too quickly. What good is a portable device if you must be close to a power source?
– its look. Why should I buy this "3ds" if the DSi XL has a bigger screen and is cheaper? It doesn't look different enough from the other DSes. The WiiU may have a similar problem (as we saw during E3).
Another flaw (not from the system, but contributor) is the lack of new games. What do we have to play? A port of a games from other systems (SF4, Dead or Alive, Ridge Racer, Zelda OOT, Nintendogs – granted, it has cats this time, etc). What original and refreshing title has been released? Pilotwings? But what is the duration of that title? The device seems to have been rushed to market and not enough content produced. Even the online features (such as the e-shop, video streaming, etc, were not there from the start).
Granted, now Nintendo seems to be addressing those issues. But the momentum from the launch was lost, and sales have slowed down. Let's see in the following months how much effect this price drop will have, and if it can gain momentum again.
Best!
seriously blake, i don't mean to be rude but you seriously need a screening filter on your posts. most of them are either negative and upsetting without reason or just completely pointless and annoying. again i don't mean to be rude, but if you don't you guys will probably lose a lot of readers.
on a separate note. i was reading a kotaku article that put to reason what is happening here very well. i'm sure we all remember what happened with the ps3, disgustingly overpriced for what it was. they then, over a long time, began to strip it down to its bare essentials very, very slowly whilst reducing the price very, very slowly. this was faulty. doing this so slowly was a bad idea because it didn't do anything to repair the bad reputation the ps3 was making for itself. Because nintendo is taking this quickly with the 3ds it will essentially put a halt to any bad reputation that could be built for it, making it so that those that didn't buy wouldn't have any negative thoughts blocking them from buying the system (sorry if my wording isn't great, i'm really tired right now lol)
Lets wait until 2011 is over and the first holiday season is done for the 3DS, look at the numbers, and THEN start talking.
The 3DS had actually sold a million more than what the original DS did, without a holiday season. I wonder why they set the bar so high this time. It also has more interesting games and features. We're just really hard to please. Also, while I admit that smartphone gaming is a factor, to me the biggest 3DS killer is his older brother, the DS. Kids simply don't want the 3DS because there are no good games for them, and parents think it is too expensive; so they get them a DS some Mario Kart and Pokemon, and the kids are cool with that. The DS is still alive and a very very good gaming system that is cheap enough. The rushed launch was not rushed because a lack of features, but it was launch on a time where its predecessor was still alive! It even came out next to Pokemon Black. Any other competitor would have noticed the stupidity of competing next to Pokemon, but not Nintendo.
1. The sales of the 3DS launch were better than DS.
2. We have Zelda OOT with improved graphics and 3D
3. Aren't the stockholders reacting prematurely? Nintendo is a proven company!
4. Ipod games are a lot of amateur made games with no quality control.
5. Ipod games do not have tactile control.
6. Surfing the web and playing games on my phone drains the batteries real quick and then I can't make or receive calls!
I think dedicated handheld gaming has a BRIGHT future. Most of my favorite games were made by Nintendo. Nintendo makes quality games. That's what you should say on a blog for Nintendo fans dude.
There might be something to this new death or paradigm shift for handheld gaming. This is anecdotal, but my experience with my son and his friends is telling. I have a pre-teen son and so are his friends. Guess what my son wanted for his birthday… an iPod touch to play games! His friends are doing the same thing, either playing ipod touch or getting their parents older 3G iPhones. None of them wants a 3DS, at least yet.
I sure hope not, I hate those stupid smart phone games, sure they are cheap, but their gameplay and replaybility are also very small for majority of them.
@Mohan @Gern
There's some really good games in it like Osmos and World of Goo. When a game is designed around the functions of the hardware and not a retrofit of another console game, some great things can happen. Sure, there are duds, but there are gems as well. And even some d-pad and button games are great, like League of Evil. Very precise touch buttons, and the game plays like a dream. I really do not miss buttons on most of the games that are designed correctly. It may not be DEEP like OoT3D deep, but it's still fun. I still like my DS Lite for longer games and core experiences, which is ironic since the DS put touch in the forefront of gaming.
Dedicated handhelds aren't dead, but you can't expect people to pay more than $200. Vita will face this same problem.
The 3DS had a horrible launch lineup, and it's yet to improve. Whenever they bother to release some worth while games, everything will be OK.
The 3DS should have been launched in September and used Christmas for a strong start. They could have maybe gotten away with $250 then. MAYBE. Spring launch was really dumb.
The nice thing about a spring launch is that you don't have to fight people to get one, like you do at Christmas. I was hoping for a spring launch for Wii U also.
While the reason for the price slash might be a combination of all the ones quoted, I think the dangers still lies in something Nintendo has not even addressed: the price of the games. Handhelds are competing in a market where the games are now between $1 and $10 dollars across all platforms except for Nintendo and Sony portables. And the price for those jumps to a jaw-dropping $40 dollars for those!
I'd say, price the catridge games at a middle ground of about $25 – $30 each for premium content, and the sales will rise again.