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Nintendo sold 3.61 million 3DS’ in its previous quarter. Since then, sales have dropped to 710,000 units in the last three months. Profits have also declined from lack of sales for other Nintendo products. The company lost 25.5 billion yen in the last 3 months ending June 30. They also had to lower profit and sales forecast by 82 Percent and 18 Percent, respectively.
Hearing news of this, Nintendo slashed the price for its latest innovation, the Nintendo 3DS, to $169.99 from its original price of $249.99 — a 30 percent drop. Price will come into effect as of August 12, making for a successful holiday season for Nintendo.
This was not the first price cut they made this year. Due to a drop in sales earlier this year, the Nintendo Wii also went down in price, from $200 to $150 on May 15. In the eyes of the consumer, spending $249.99 on a handheld system is no bargain, when a Nintendo Wii system costs $100 less.
What does this mean for the majority of consumers who have already purchased a Nintendo 3DS? According to Nintendo, loyal customers will receive 20 free downloadable games from the Nintendo eShop. For 10 of those games, Nintendo has no intention of selling them in the future and they are redesigned exclusively for this purpose. Games included on that list are: Yoshi’s Island: Super Mario Advance 3, Mario Kart: Super Circuit, Metroid Fusion, WarioWare, Inc.: Mega Microgames and Mario vs. Donkey Kong, all originally from Nintendo’s Gameboy Advance console. Starting September 1, those members will also have access to 10 new games before they become available to the public. Super Mario Bros., Donkey Kong Jr., Balloon Fight, Ice Climber and The Legend of Zelda are some of the games featured on that list.
Another way Nintendo is trying to boost sales and profit is by releasing remakes of Nintendo classics such as Zelda: Ocarina of Time, Mario Kart, Starfox 64 and Kid Icarus.
They are hoping that its features will be enough to sell the product as well, with its access to Netflix, they are calling it a must have. In addition, the Nintendo Video service provides access to all sorts of 3D video viewing. Finally, Users have access to the Nintendo eShop, where they can purchase downloadable games, view game trailers and have access to product information.
Satoru Iwata, the president and CEO of Nintendo, is taking full responsibility for their losses, which has led him to voluntarily cut his $2 million pay check by 50 percent. He is not the only one taking a pay cut. Other representative directors are taking a 30% pay cut, and executives are deducting 20 percent from their salary. These will be very favorable moves for shareholders.
Nintendo is in the process of working on a new project, Wii U, which is expected to launch next year. In an interview, Iwata says that this new project will not be cheap and sell for about $250. Due to the company’s sacrifices and innovations, Nintendo expects to see an increase in its profits.