Nintendo claims that it will slash the price of its Nintendo 3DS gaming console for the US customers and the price will be reduced to $169 from $249. They took this price cut decision due to a huge drop in sales which drastically reduced its profit outlook for 2011.
The officials of this Japanese video gaming giant declared a net loss of $328 million for Q1 2011 (April-June) as a result of a 50% drop in sales in comparison to last year sales record. This impelled Nintendo to cut its net profit estimate for the year to $257 million, lower from a previous estimate of $1.4 billion.
Worldwide, Nintendo has been sold 710,000 units of 3DS in addition to 4.53 million game titles throughout the quarter and 1.56 million units of its Wii console. The price of Wii also just cut to $150 in the U.S.
As per Nintendo’s executives lack of hit games, accompanied by a stronger urge against the dollar and costs of 3DS promotion, affected its earnings. The company is expecting that the drastically reduced price of the 3DS will create momentum prior to the holiday shopping season.