Nintendo president Satoru Iwata today discussed with shareholders his decision to suddenly slash the price of 3DS. A price cut for a system so soon after itâ€™s launch is obviously troubling news to investors, so much so that Iwata himself hasÂ taken a pay cut.
When asked why Nintendo decided to drop the price of the 3DS system so soon after launch, Iwata stated, â€œFor us to maximize the effect of the anticipated titles of this year end, it is necessary to greatly expand the installed base so that the appeal of the new software will be able to spread to consumers in a short period of time.â€
Iwata goes on to say that another partial motivation for the price reduction was to eliminate concerns that retailers and third-party software publishers may have of the handheld. With game publishers deciding which projects to allocate their resources, Nintendo is hoping this move will entice publishers to begin development on projects for its handheld. â€œWithout creating such a circumstance, we would not be able to realize explosive sales in the year-end sales season,â€ Iwata says.
â€œIn short, we have concluded that for Nintendo 3DS to expand enough to become the successor of Nintendo DS, we have to take a drastic approach,â€ Iwata explains. “We decided that if we take brave measures now, there’s high likelihood that many players can enjoy the Nintendo 3DS in the future.”
Do you think the price cut will provide the boost that Nintendo is hoping for?