As E3 news and announcements wind down, several questions remained unanswered. Chief among those for many is the pricing for the new 3D capable Nintendo 3DS. Nintendo CEO Satoru Iwata sat down with VentureBeat to discuss the economics of price surrounding the 3DS.
“I have to refrain from talking specifically about the price point," Iwata said. "What I can confirm is that, in terms of the production costs, it will cost more than the costs for the Nintendo DS today. Having said that, we believe we will produce enough value worthy of the production cost. We do not think we have to sell the products below cost."
Though other business models from multiple gaming manufacturers actually result in a loss on each sale for years, Nintendo will keep the price at an area where the 3DS will remain profitable. Nintendo did have another year in the black for fiscal 2010, but the company did see an 18% dip in profit year-over-year. Where other consoles rely on games and other first- and third- party sales to make up for the cost of each console, Nintendo has traditionally focused on ensuring a profit.
With all the new features and technology present on the 3DS, Nintendo has remained rather quiet on the actual pricing for the handheld. The previous handheld model, the DS, retailed at $150 in the U.S. when it was released, but the rumored $199 for the 3DS “is the best bet,” according to Signal Hill's Todd Greenwald.
Iwata discussed the 3DS as a response to growing Apple share in the handheld gaming marketplace, stifling any rumors. "It was not our goal to [create the 3DS as an answer to Apple], but if people think that, it is the result. We never try to think in terms of any competitive product or company. If you do that, you just focus on a certain narrow area," he said.
