A lot of companies in the tech world sell their starting hardware at a loss. They do so because they assume consumers will buy enough software and accessories to make up for the difference. That statement is exceptionally true in the gaming arena.
In speaking with Bloomberg, as part of the financial operating loss report we ran earlier this morning, Nintendo spokesperson Yasuhiro Minagawa indicated that this month marks the end of the Nintendo 3DS being sold at a loss.
While Mircosoft and Sony typically sell their systems at a loss during the beginning of a hardware generation, Nintendo has worked hard to avoid that issue by using cheaper tech. The Nintendo 3DS, however, was priced too high during its initial run. Once the Big N slashed the price of their brand new handheld, they starting selling the systems at a loss of profit.
Now, however, the cost of parts has fallen as such that’s made selling the system a little profitable. Despite the operating losses of the last year, Nintendo hopes this regained income will help bolster their performance.
Of course, their performance largely depends on the pricing, launch and software lineup of the Wii U. Once those details come, we’ll bring them your way.