3DS needs more than price cuts to succeed — analyst

Compared to Nintendo’s earlier portable consoles, the 3DS has suffered significantly, sales-wise. Nintendo addressed that issue with massive price cuts but that won’t be enough to turn its bad fortunes according to M2 Research analyst Billy Pidgeon, who believes the company needs to “change its business fundamentally.”

“Nintendo needs to change its business fundamentally,” said Pidgeon. “With Wii and DS, Nintendo built large installed bases but failed to energise those bases. Selling in hardware is important, but Nintendo must increase attach rates and third party opportunity dramatically.”

He added, “lower 3DS hardware prices only address part of the problem. It’s more important to sell more software as packaged goods and paid digital downloads to each customer who buys a hardware unit,” and went on to explain he’d like to see Nintendo “cut the retail price of packaged software to a range of $20 to $25 for the 3DS. DS software should be $20 or less.”