| Metallicube said: For the record, I don't think the 3DS will be a failure by any means, I just think it'll be a step down as it thus far seems to limit its appeal somewhat by having mostly core games and having a higher cost. I still think it'll crush the PSP2 (unless Sony releases a PSP smartphone but then you couldn't really count it anyway since it would be a very different device serving a different purpose). Yes there is Nintentendogs but that is merely a sequel to an already established franchise, which is appealing to current gamers (people who bought the first Nintendogs). What Nintendo needs is a new hook and new software that appeals to NEW audiences and ex gamers. I don't really see how the 3D alone would get people interested in games that wouldn't play anything else, but I suppose Nintendo could release some games that surprise people.. The Vitality Sensor for instance is a great example of appealing to new markets, though that is on the Wii and considering the lack of news about it lately it's not even certain that the thing will come out. Games like Nintendogs will sell very well, but like WSR, I don't think it'll move much hardware because it is a sequel to an already established franchise appealing to already existing consumers. I guess what I'm saying is it will be a highly respected "gamers" handheld but will have more of a limited appeal than the DS, at least initially. |
The 3DS's high price point is most likely an action to maximise profit, though. We don't know Nintendo's production rates yet but most likely Nintendo raised the price intentionally to avoid severe shortages. Basically if there's a sales volume of 25 million handhelds at a price of 199$ and 20 million units at 250$ in the first fiscal year but Nintendo's maximum production doesn't exceed 20 million units / year it is a wise step to price the system at 250$ because to maximise profit.
Nintendo is definitely trying to expand the appeal of the DS line, though. 3DS also offers new functions to attract interest of distant consumers (movie playback, faster internet, 3D cameras, music, etc.)
They are also clearly trying to move upmarket with the 3DS. In higher market segments customers are willing to shell out more money which increases revenue and profit. And Nintendo definitely needs the developers community on their side because they can't push a 100 milion selling system on their own.
If everything works according to their plan I expect Nintendo to drop the 3DS price when the PSP2 launches in late 2011. But since they most likely won't follow a skimming-pricing strategy we can expect them to release a "3DS lite" in 2012 at 200-250$, effectively raising the price again.
