$250 was a stupid move. I'm just really glad they're learning their lesson before the Wii U comes out.

A $250 slice of humble pie is a hell of a lot easier when you can afford a price drop than a $600 slice you can't.

So now they're looking forward to a Mario Kart/Zelda/Starfox/Super Mario holiday with a system parents can pick up on impulse.

We may analyze this from a business perspective since a sales site naturally gravitates towards that kind of thought, but your average consumer couldn't care less. They're getting a new 3DS dirt cheap by comparison.

Just seems very irrational and a reactive desicion to me, $199 would have been better for the long haul, and I would have delayed until September, put out those 1st party games (like they plan) and put out a new ad campaign detailing the differences (which I think they're also doing)

holy shit we're gonna get 20 free games!! :D so now it feels ok to have bought the system!

early adopters just lost 100$

Whatever the reason, this is excellent news, at this pace by Xmas 2012 3DS should cost 75€ in EU.

Edit: If by then it gets the SW too, it'll be an offer that can't be refused!

The market clearly signalized the price was over the point so a cut was unavoidable. By cutting deep they are preempting PS Vita, as Sony is probably already taking a big loss at each sale and have much less room to maneuver. I guess Nintendo was, from beginning, planning this strategy: lets sell the 3DS at a big margin to early adopters and cut the price depending on how much Sony will ask for Vita. The problem is that they set the value too high. I believe if they started the sales at $199 it would not look so bad when the cut it today to $169.

Still, much of the DS sales is for kids, as the price is low and the product is quite resistant to abuse. Hopefully, the 3DS will now reach that market, although I have seen a lot of DS being sold this day to small kids as parents take the opportunity of the low prices.

With the recent news that the 3DS is now losing money per unit, would you still say that the price cut isn't too high?

BTW, here in Italy current DSi XL price starts from 169€ for the least liked colours to more than 180€ for the most liked ones. With 1/3 cut, 3DS will cost less than 173€.

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

I'm pissed at the game list... Give a choice maybe? but a set list of games i've already played... meh...

(that said I don't regret buying it ^^)