September 10, 2011
Nintendo Slashing Prices, Hopes To Boost Demand
Nintendo Co. has seen its shares drop 45 percent in 2011 in Osaka trading due to concerns that the flare may have run out on the company's video-game consoles.The company sold fewer than a fifth of the 16 million 3DS handheld game consoles it expected to sell in the last five months.
Nintendo slashed its 3DS prices as much as 40 percent in July after initial sales fell short of estimates. Some experts believe this will still not be enough to revive the company's stock price.
“Nintendo must adjust its expectations in a world increasingly dominated by smartphones and tablets,” Michael Pachter, an analyst at Los Angeles-based Wedbush Securities Inc, told Bloomberg. “Nintendo will have two-thirds as much success in handhelds and consoles as in the past.”
Nintendo said it sold 235,000 units of its 3DS console in the U.S. in August. About 185,000 units were sold after the price was cut to $169.99 on August 12. Despite the company not meeting its own 16 million 3DS handheld game console expectations, sales of the 3DS have jumped over 260-percent in the following 19 days.
The company is launching the Flame Red 3DS alongside Star Fox 64 3D, hoping to boost demand even further.
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