3DS hardware will be profitable this year

Galaki

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Galaki on 30 January 2012

They said from the beginning that 3DS was selling at a minor loss after the price drop. Shouldn't take too long to become profitable.

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famousringo on 30 January 2012

I can't help but feel that if they had launched at $199 to begin with, they could have already crossed the profitability threshold and they would have never suffered the black eye of cutting price less than a year after launch. $200 is a big, nasty psychological barrier, and the 3DS was simply on the wrong side of it.

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MRKs on 30 January 2012

Afraid to sound stupid, but how can Nintendo expect to sell hardware at profit? I surely don't think they will put a higher price on 3DS...

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manuel on 30 January 2012

They probably found a cheaper way to produce/buy some components.

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archbrix on 30 January 2012

famousringo said:
I can't help but feel that if they had launched at $199 to begin with, they could have already crossed the profitability threshold and they would have never suffered the black eye of cutting price less than a year after launch. $200 is a big, nasty psychological barrier, and the 3DS was simply on the wrong side of it.

Agreed, 100%.

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Cheebee on 31 January 2012

MRKs said:
Afraid to sound stupid, but how can Nintendo expect to sell hardware at profit? I surely don't think they will put a higher price on 3DS...

Production of most tech gets cheaper over time, due to things like streamlining production processes, components getting cheaper over time, alternative production methods being introduced, and more. Otherwise a LOT of tech companies wouldn't ever make any profits off their products, and pricecuts would only ever lead to more severe losses.

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