Nintendo to lose money on every Nintendo 3DS sold
A Bloomberg Japan report has stated that the recently announced price cut for the Nintendo 3DS will mean that the company will incur a loss on every system sold.
During the press conference in Osaka, Nintendo’s global president and CEO Satoru Iwata justified this by stating that such a major move would be necessary in order for the company to improve their fiscal performance for next year and the future.
In addition to the price cut, Nintendo also lowered their earnings targets for the year to which SMBC senior analyst Eiji Maeda explained to Bloomberg that 40% of such a lowered revision was solely due to the Nintendo 3DS price cut. Securities Japan analyst Masayuki Ohtani also expressed his surprise at how quick the price cut had been made.