According to Nintendo, the price of its Nintendo 3DS gaming console is going down from $249 to $169 in the United Sates. This is in connection with reports coming out that there has been an extreme drop of sales of the Nintendo 3DS. In addition, they have reported also of significantly cutting its profit outlook for 2011.
In comparison to last yearâ€™s sale, there is a 50% drop in sales of Nintendo 3DS. This means that there is a net loss of $328 million for the first quarter of 2011. Because of this latest development, Nintendo decided to lower their net profit forecast for 2011. Nintendoâ€™s previous profit forecast is approximately at $1.4 billion. Now, their profit forecast is down to $257 million.
During the first quarter of 2011, 710,000 units of 3DS and 4.53 million game titles were sold by Nintendo from around the world. Additionally, 1.56 million units of Wii console have been sold during the same time of the year. Incidentally, the price for Wii has also been reduced to $150 in the United States.
The stronger yen against the dollar, the cost of 3DS promotion, and because they have not produced popular games are just some of the possible culprits Nintendo is looking after. They are hoping that sales will pick up after the dramatic price cut of the 3DS.