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Nintendo Will Lose Money On Each 3DS Sold

by Matt Helgeson on Jul 28, 2011 at 02:20 PM

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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.

Source: Andriasang