It was a big drop, but Nintendo needed it. NDS launched at 149$. 3DS launched at 249$. It`s a big difference when trying to replicate the success of DS.
Of course, that by doing that, Nintendo will be in the red for a period of time.
This last part will be overcome in two ways: by mass production of the parts and/or a redesign (3DS lite) with a higher price tag of, let`s say, 199$.
And a future redesign with a higher price may now be doable without cutting price once again seeing as there is room for the introduction of the redesign within a acceptable price tag.
I think that if this happens, not only can Nintendo have a margin for future price drops but also make profit on the hardware as a whole.








