Due to some financial troubles, Nintendo shockingly announced a price drop for its 3D handheld on Thursday. Revenue dropped about 50% (¥25.5 billion/$328 million) for the three month period ending in June 2011. Sales are down all across the board and not just on the Nintendo 3DS front. Wii sales are down 49% compared to this quarter of last year; Nintendo DS sales were down 54%. Software for the Wii and Nintendo DS respectively were down 52% and 46%. Not incredibly surprising considering the lack of quality content Nintendo has provided as a first party company so far this year.
Following the price drop, Nintendo 3DS handhelds will be sold at a loss. To make up for this loss, Nintendo president, Satoru Iwata will be taking a 50% pay cut. Satoru Iwata and his board of directors hold themselves accountable for the poor financial performance, which will also see a 20%-30% pay cut for the board of directors.
Nintendo shares also dropped 12% following the release of its financials. Former Nintendo president, Hiroshi Yamauchi, has reportedly loss about $300 Million with regards to his 10% stock in the company. This may seem like a doom and gloom situation, and it most certainly can be, but Nintendo is definitely ready to bounce back. Cutting the 3DS price will no doubt increase sales for both the hardware and software alike. Not to mention the great first party lineup coming this fall including: Super Mario 3D Land, Mario Kart 3D (MK7), Kid Icarus: Uprising, and Star Fox 64 3D.
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