Nintendo

Nintendo 3DS: Nintendo Needed To Take Drastic Measures With The Nintendo 3DS

Nintendo president Satoru Iwata has explained to shareholders that Nintendo needed to take drastic measures with the Nintendo 3DS as sales of the console were falling far below their initial expectations. Iwata pointed out that Nintendo will reassess the situation four months after the price cut to work out what needs doing next.

As we announced at the E3 show, which was held in Los Angeles this past June, we have a strong software lineup for Nintendo 3DS toward the end of this calendar year, with which we were thinking that we would be able to boost the hardware sales, but in terms of the current situation, for us to be able to help Nintendo 3DS to become a sound successor to Nintendo DS, and to get it back on track to its originally-anticipated sales pace for its wide expansion, we concluded that we needed to take drastic measures, and we decided to make the markdown.

First, since the launch of Nintendo 3DS, one of the things we have learned is that it has taken longer than we had originally expected in order for the appeal of this product to widely spread.

Another reason is, we thought that eliminating the concerns of future hardware expansion early on would make a great difference to how retailers and software publishers will allocate their energies.

In short, we have concluded that, for Nintendo 3DS to expand enough to become the successor of Nintendo DS, we have to take a drastic approach.

More specifically, I hope you will at least try to see how it will play out over the next four months, until the end of the year-end sales season, before making any judgments.

On the other hand, a drastic markdown like this, before the mass-production effect can take place for the hardware, will naturally generate red ink on the hardware sales. As a result, a significant minus effect is expected on the profitability of the current fiscal year. Even though we understand this, for us to elevate Nintendo 3DS to be the platform that can sustain our business, we have concluded that we need to take the best possible measure we can take now, even at the cost of short-term profitability.

It is quite unusual for us to change the price in less than half a year from a product’s launch. I am aware that realizing both the short-term and the mid-to-long term profits is one of my responsibilities as part of the management. I feel greatly accountable for having to make the markdown shortly after the launch, for having damaged our consumers’ trust, for having made a significant impact upon the financial forecasts, for the annual dividend now being expected to be significantly less than originally expected and for now forecasting that there will be no interim dividend.

However, for the management to show its accountability for the level of the operating loss of this time and the prospect of no interim dividend, we decided at the directors’ meeting yesterday that we would reduce the compensation we will receive as the directors of the company.

Source

69 comments

    1. no doubt at all. I mean, there are about 10 killer 3ds games coming soon. and we havent even had the 3ds for a whole year. imagine by the end of 2012, a HUGE Virtual Console list, a respectable downloadable market. And the fact that games like Majoras Mask, and SSB4 are coming will definantly make a huge impact on 3ds sales.

  1. Sniff, So noble Nintendo is. But its good to hear that they did what they belived would sell the 3DS good, experamenting with ideas somewhat new to them.

    I think the pric drop was a bit to much, ‘cuz isnt that the same price as the DSiXL? 200 bucks whuld have been enough… In my opinion, anyway.

  2. Let’s hope sales explode now with the price drop. I’d say 5 months for the full effect, 4 months won’t even get us to the holiday season, when these things will not be able to be found. Also with the expected software arriving in 5 months.

  3. Perhaps I’m taking this the wrong way, but after hearing about greedy bankers and businesses who cut jobs and give the “grunts” more work and less pay, it’s nice to see that Nintendo’s higher-ups are willing to take a hit for the good of their company. I know that they probably make a ton of money anyway, and are probably nowhere NEAR being remotely poor, but it shows great dedication and honour on their part.

    I think that this is further boosted by the special offer of free games for early 3DS adopters, as not to leave them feeling cheated, since I imagine that a large percentage are massive Nintendo fans anyway and would greatly benefit from the offer of free classics.

    It’s interesting to see Nintendo trying the “lose out on hardware and make it up on software” tactic, so it will be interesting to see how this all pans out.

      1. Well, you idiot, the flash cart situation does affect the decision because if I have to choose between buying a DSi where I can play thousands of games for free with a flash cart or buy a 3DS and have to pay for every game, well chances are more people prefer not to spend that much much and get a DSi.

        1. Well, you idiot, you are the reason why Nintendo puts region locking on their consoles and loses money on software sales each quarter. I hope you are proud.

        2. Your saying they would make more money if they promoted piracy? You have it completely backwards…

  4. Well the good news is that Nintendo will not repeat the same mistake of having an expensive system come out and not have many good launch titles. That was probably Nintendo’s worst move yet but at least Nintendo accepts and learns from their mistakes. At least things will probably get better by the end of the year.

    1. Thank you, my son. If you do not want us to fail, you have to buy hundreds and thousands of 3DSs at full price and convince other fans not buy the 3DSs at price cut, but at full price only. Please buy every single title released on the 3DS, including e-Shop. Do not buy games online at reduced price, only buy from us. And do not get cheap, you have to buy 5-10 of every game. Only then… and maybe… you honor me.

      Hurry, my son! Buy as many 3DS hardwares and games full price as you can!

      1. Lol, you misspelled “Satoru”. Oddly, whenever Nintendo is hurting, I do feel the need to help as much as I can. I guess it a primal instinct to help a gaming company that I’ve grown up with and shared with my whole family.

    1. The fact that the game was barely a concept at E3, and the fact that it is still mostly concept (heck, it might not even come to the 3ds, it might be WiiU only. Or both the WiiU and 3DS versions arrive in 3-5 years) makes a trailer the worst thing to release.

      SSB4(/5) Coming 2016.
      That will be the best reason to buy a console 4 years in advance.

  5. (Off topic) Does anyone think Nintendo will give us club nintendo coins for the 20 free games. With that and surveys, that’s like 400 coins! (if I’m not mistaken)

      1. Yeah you get 10 coins for getting anything from the eShop. And its like the European points.

          1. I’m thinking on the 10 NES perhaps since those will be retail (when made to 3D classics), since we can “upgrade” to it. On the 10 GBA games, I wouldn’t be counting on it.

    1. 20 x 10 = 200. Math fail. But since I’m not expecting the GBA to net 10 coins each, I’d say 10 x 10 = 100. I’m also guessing you won’t receive the coins until the game is updated (NES).

      1. Wait, do the surveys give you an extra 10 coins, or do you have to get the coins from the surveys? Because if its extra then you would get 400 coins, if GBA is included.

        1. When you buy digital content (like a virtual console game), you only get a post play survey, which is valued at 10. Try it out now, buy Link’s Awakening DX. You’ll only get 1 survey, and that is the post play one.

          For physical games, you get 50 (30 for DS) for the registration (entering in the code on the club Nintendo doc), then you also get a post play for 10.

          In addition if you do the “intent to buy” or register it early (like buy it the day it comes out AND register it) you get 10 (and 10 more for register only). Both of these only apply to physical games at this time and not DL content such as VC games.

    1. I think the slow sales are mostly due to lack of software because even people who didn’t mind the 250 price tag didn’t want to buy it because lack of software…I think if it would of launched with Oot and Mario and had some pretty cool games on the eshop sales would of been a different story…I bought my 3ds in march I played pilot wings for a few hours then I was done and spent most of the days following only opening my 3ds to check for updates but I know the software is coming I just have to be patient lol

    2. Yes, but now $170 seems like a bargain in comparison, and many will jump on that opportunity.

  6. 1. Cut the DS line completely. 3DS can play DS games, and the first DS came out in 2004, so forget those people who are still pandering for the DS, and especially those people who are pandering for a GBA slot on the 3DS. GBA came out ten years ago, if you can’t find one of those for about $20 on EBAY or Amazon, and expect Nintendo to keep babying you by giving you slot for a ten year old console, then that’s your problem. Get with the times. Cutting the DS line stops people from picking up DS’s thinking that the 3DS is just a redesign and the old DS is just a cheaper option. The thing has done 100 million right? Nintendo made the money, time to cut this -6-7 year old machine.

    2. Let people know that the 3DS is a new console, make sure Wal Mart and others have 3DS displays that explain that this is a new powerful handheld. I seriously went into a Walmart like a month or 2 after the 3DS launch, and there was no display or even 3DS’s or 3DS games displayed.

    3. Advertisement that’s convincing. This shitty 2000s style advertisement is boring, get some hipsters to look dumb in a commercial, it’s not convincing anymore. Bring back that old 90s-early 2000s type of advertisement that was fun and got people’s attention and wanting to buy the game. Not some crappy CGI or live action trailer that shows nothing to do with the game, and then absolutely no ganmeplay.

    1. I have to agree with you, they need to stop selling DSi, that’s old. And too many people say, “Oh that’s just a 3d ds”. Are they stupid, I mean it has its own games!
      I think Nintendo needs to advertise that 3DS IS DIFFERENT!

      1. Yea I remember the commercials for n64 they were awesome they would show a bunch of different gameplay from different games…I kno when they showed that commercial I wanted to get n because I didn’t want to get out

    2. In the UK for the last week or so Nintendo seems to have totally upped their advertising game with regards to the 3DS showing off the games (metal gear solid/zelda etc) and the system and *shock horror* no mention of the word ‘3D’ at all (apart from when they say 3DS obviously) with the tag line ‘this is not DS this is Nintendo 3DS’. Much much better IMO, about time too!

      1. Yes, I saw that advert. As long as they bring a similar style ad to the US, then I can see that helping clarify the differences between the systems.

        1. I’d be surprised if they didn’t do similar adverts in the US, I think Nintendo knows more than anyone that it’s time to change up their tactics. Good one ’em with the price cut I say – the price point has been a major problem for most potential buyers so far – surely sales will rocket with Star Fox, Mario Kart and Mario Land on the way.

    3. Dude, STFU:

      1. If people need to grow up and get with the times, that would mean not buying any Nintendo related game: re-releases, remakes, rehash… That would mean ignoring every game on e-Shop, as well.
      How hard is it to include backwards compatibility with all previous systems? PSP does it, and they even have a full catalog of PS1, PS2 & PS3* (*on Vita) titles, instead of making you wait years and years for a half-complete list. (BTW: If you want to take that as me being Sony fan only, go ahead and cry me a river). Also, $20 for a GBA? Where? The last time I ever payed that amount for a system – which you hardly find – I regretted it, the screen was broken rendering the purchase completely useless.

      2. Advertisements cost money, and Nintendo can’t afford to lose any more of it. And even with ads–like the Virtual Boy–PPL may just see better value elsewhere. Most people are now turning to phones; which include more multimedia features/apps., $0.01 (sometimes even free) downloadable games/apps./music/books/radio/full movies/more, phones are also used for emergencies/calls for kids who go to school, text, e-mails, more entertainment etc. iPhones should be a bigger threat, I’d say, than Sony. Especially since they’re selling a lot more.

      People who are looking for just games alone, may be interested in portable consoles – and those numbers are declining, but for those who want something that does more they look for iphones/ipads etc.

      3DS wasn’t failing just because it came out during a bad month and damages eyes/brain, but because for a portable that only plays games, has only DS backwards compatibility, and kills your battery faster than DSlite or any other portable $250 was way overpriced. Somehow the list of what Vita could do was longer than 3DS list + it consumed less battery & somehow it was priced the same $250. I don’t believe they’ll be losing money – personally I believe they’re saying that for pity and compassion.

      If anything, to sell more, what Nintendo needs to do is crank up the Bullshit machine about what the 3DS will someday be able to do, if you can wait long enough, like the Wii or Gamecube.

      3. Uhm. You were just saying people need to “get with the times”, now you’re saying they should throw in 90s commercials to brainwash people into buying something. What?

      Also. When I bought the NES, SNES, GB, GBC, GBA, Sega Genesis, N64, PS1 & PS2, I bought them for the games they had not because some commercial kept flashing me till I had no other option but to buy it. If that were the case, I’d have over 100 GBCs for every time one of their commercials poped up.

      BTW, if you were “with the times” people aren’t watching TV, but are more on the internet.

      Sorry, but I don’t agree.

  7. On a pure advertising standpoint, Nintendo needs to get over the fact that the 3DS has to be experienced in person and really build up advertising in every possible avenue.

    Also, they should never launch hardware in March again. ;)

  8. If they went and had all of the good games out at launch then I dont think it would be as bad. Comon, no body is going to buy a new video game system if there isnt any good games for it.

    Also we need more freaking colours! I hate the blue they picked. Id like a darker blue on like my Original fat DS please.

    1. Also maybe they should bundel it with free stuff. Like when I got my DSi I got 1000 free nintendo points for it. I still have 200 left.

      Put some gameboy colour games too on the virtual shop, like the old school pokemon games.

      And agaon since I am a huge pokemon fan, remake pokemon ruby/sapphire for it and purhapes put pokemon gray on it too (comon we all know those games are going to be made).

  9. WHY I THINK THE 3DS ISNT SELLING
    1.250 PRICE TAG
    2.WAITING ON OTHER 3DS COLORS
    3.SMALL SOFTWARE

  10. NINTENDO NEEDS TO GIVE THEIR FANS AN UPGRADED MESSAGING SYSTEM/FRIEND INVITES AND DEMOS TO BOOSTS SOFTWARE SALES I MEAN I PAID 250 4 A GAME WITH A CHILDISH MSG SYSTEM

  11. Nintendo finally got the picture. You should never charge extra for a feature. Sony got it with the ps3 (Blu ray made it so expensive, now it’s almost the same price as a Blu ray player) and sales increased. 3DS sales will likely increase as well. You were more or less paying 80$ just for 3D. Now that it’s 170$ the 3D is no longer a price addition and is now incentive to buy one.

    Also the lack of good games for it hurt it as well. I have a game informer from when it was first announced and a list of games announced with it. The only one I’ve seen is Zelda 3D. The rest are not here or are delayed even further from original release. Give it some time, some good games and bam it’s a hit.

    1. its not paying extra for just 3D… its an entirely new system. whether it has 3D or not is really irrelevant

  12. OMG Nintendo 3DS is so full of fail. This entire situation is a fuckin’ embarrasment. Without software your hardware has no value and releasing the same bloody games over and over again won’t cut it either. Look, I get it, you can’t keep up with the demand from this new generation of ‘gimmie now’ kids. Face it Nintendo, your out of you depth now. Times have changed so you need to move on and let the big boys play.

    1. I get where your coming from, Nintendo is like a Harry Potter book being released over and over again with different fonts, the brand is all that is required to continue mass denial.

    2. its still fairly new system,every system normally has a slow start for games,some more then others,and really “let the big boys play?” you mean greedy douches that do not care about gameing

    3. So who are the big boys I might ask? Apple has no games and Sony looks like they are releasing with no games also. No I do not think people want to play ps3 on the go for limited time due to battery and small screen.

    4. Define “Big Boys”.

      They’ll recover from this. Trust me, they have experience. This was a hiccup (a decently size one I guess), but they just got the scare needed to stop the hiccup (you got to love my metaphors ;-)). They’ll fix things for the better.

      1. Nintendo has been around for 122 years, and about 35 were dedicated to video games. Tell ya what Mr. “big boy” come back 25 years from now and try telling me that LBP or Killzone are still what they used to be. Zelda has been through 25 years (and heres to another 100!) and the series only gets better. Playstation sucks. Nintendo IS the video game industry! so fuck off PS fanboy!

    1. Convert to mediocrity and become irrelavant. Seriously we need buttons. Tap games are so friggin lame right now.

  13. Nintendo will deffinetly bounce back from this. Do you know. How many kids are gonna want the 3DS? And also, those kids are gonna want whatever the hell they want, on christmas……..yea, I see good things comming from this, lol.

  14. nintendo shouldn’t worry about how the 3ds is gonna sell. overtime as more 1st and good 2nd and 3rd party games come the systems will sell themselves. same is true for downloadable games. nintendo isn’t going to lose to handheld market ANY time soon!

  15. Solution: Give us good games. Future Wii U connectivity. Affordable download content (less than 5 dollars on classic games). Geeks, start working to emulate old library on the 3DS.

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