Nintendo has sold 4.32 million 3DS units since launch earlier this year, along with 13.96 million pieces of 3DS software. In the first quarter ended June 30, Nintendo sold 710,000 3DS units and 4.53 million Nintendo 3DS games.The new 3D handheld, however, has not met Nintendo's expectations. In fact, Nintendo largely blamed the 3DS for its poor first-quarter performance in which the company saw a net loss of ¥25.5 billion ($324 million) and sales drop over 50% to ¥93.9 billion ($1.19 billion) from ¥188.6 billion ($2.40 billion) a year earlier.
The 3DS is expected to ship 16 million units during this fiscal year, and around 70 million games, but Nintendo obviously feels that 3DS needs a boost, so effective August 12, the handheld is being slashed down to $169.99 from its $249.99 launch price. While more triple-A 3DS software is coming this year, there's been not much to speak of so far other than Zelda: Ocarina of Time 3D; Nintendo lamented that they had "few other hit titles." To make it up to fans, current 3DS owners will also be entitled to 20 free eShop games.
"For anyone who was on the fence about buying a Nintendo 3DS, this is a huge motivation to buy now," said Nintendo of America President Reggie Fils-Aime about the price cut. "We are giving shoppers every incentive to pick up a Nintendo 3DS, from an amazing new price to a rapid-fire succession of great games."
All of the bad news around Nintendo's earnings has prompted the company to slash its financial forecast too. For the current year ending March 31, 2012, Nintendo is slashing its estimated profits by nearly 82%, which is quite a drastic difference. It is now expecting to see net income of ¥20 billion ($254.16 million) compared to its original forecast of ¥110 billion ($1.40 billion).
