Everybody knows the general reason for the price cut is below expectation sales not flying off the shelves and the launch of PSvita later this year or early next year.
My own take on the huge price drop of $80 margin could be of some other reasons we are not looking at:
1) There could be another remodel that may land it at $200 spot which will probably make sense considering
the huge price drop that ninty made with 3DS.
2) The price point is the sweet spot for the casual crowd considering the fact that they may not understand the
difference and value between DS and 3DS (only if they also slash the price of DS later this year).
3) In order to convince the 3rd parties that 3DS is the machine to make if this price cut explode also considering the fact that some 3rd parties has been canceling or delaying their games on 3DS while others are using a wait and
see approach before they decide. If ninty cannot convince them then which means they failed in their goal of
them to their machine. In otherwords, if they can't attract them, then it wouldn't be different with the WiiU
launching next because afterall Iwata said they are willing to spend money this time to work with 3rd parties.
4) To position the price well before the launch of WiiU (though this may not be considered as a vital reason)
5) Development cost may have been slashed further
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