Nintendo Will Lose Money On Each 3DS Sold
Unlike its competitors Sony and Microsoft, Nintendo has avoided the practice of selling its hardware for less than it costs to produce in order to build an install base -- until now. According to a report from Bloomberg Japan, the newly announced price drop of the 3DS will make the handheld a loss leader for Nintendo.
Nintendo CEO Satoru Iwata revealed this new strategy today at a press conference in Osaka. He said the move was made with the intention of increasing revenues and profits in the future, despite the temporary setback.
This likely has a lot to do with Nintendo revising down its profit forecasts today.