3DS sales surge after price cut

8 years ago by in Japan Archives

The radical price cut of the Nintendo 3DS console has quickly revived the product, with more units being sold in the first three days at the new price than in the first week after the initial launch.

Radio Nikkei reported that in the week Aug. 8-14, with the console price slashed by 40 percent (to $169) starting Aug. 11, Nintendo sold 207,000 units, 5 times the sales of the prior week (fewer than 40,000).

By the end of the first week of discounted price, sales may reach 300,000 worldwide.

Sales had been sluggish in the first six months after launch, so the Japanese console maker decided to cut the price of its 3DS console, starting Aug. 11 in Japan, and from September in foreign markets.

The move was expected by analysts to recover market share but to affect profits. Nintendo announced a ¥25.5 billion ($327 million) loss for the April-June quarter.

The console and portable gaming market in Japan dropped by 16 percent in the first six months of the year, to ¥192 billion ($2.4 billion), with unimpressive game titles and lower hardware sales cited as reasons for the fall.

Sony, the big Japanese rival of Nintendo, has recently said it was not going to reduce the price of its PlayStation Vita portable console.

LAst week, however, Sony said its new portable gaming console PlayStation Vita will not be launched in U.S. and Europe by this year’s Christmas, dealing a serious setback to the sales of the company.

Sony Executive Deputy President Kazuo Hirai announced that PlayStation Vita will be launched by the end of the year in Japan, while the U.S. and Europe markets will follow sometime early 2012.

Christmas is the most lucrative period of the year for console makers.

Failing to bring the console to U.S. and Europe by this Christmas is going to prove painful for Sony, an analyst for Daiwa Securities Capital Markets in Tokyo told AP.

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