Nintendo will make a loss on every 3DS sold

Nintendo is stepping into new territory by introducing a price reduction for its 3DS, as it means the company will make a loss on each console

Tags: Nintendo Company
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Nintendo will make a loss on every 3DS sold The gaming giant has taken the decision to reduce the price of the 3DS and is accepting a loss on every console it will sell
By  Clayton Vallabhan Published  August 1, 2011

Nintendo's price reduction of its 3DS consoles, from $249.99 to $169.99, will negatively affect its revenue. The price cut will mean that the gaming giant will make a loss on each unit sold.

According to Bloomberg's Japanese division, Nintendo's price cut for the console will mean it is taking a hit. Microsoft and Sony are said to also accept losses on the Xbox, PS3 and other consoles, however because of game licensing they can afford to book a loss on the hardware, as they make profits from the software.

This was something that Nintendo generally didn't believe in; the company's approach was always to make a profit on the hardware too. This paid off for them with the release of the Wii and the subsequent profits it made.

Nintendo's decision to reduce the price of its 3DS does mean that the company is taking a risk, but the new price point encourages users to buy the console.

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