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    Nintendo was founded in Kyoto, Japan in 1889 as a manufacturer of hanafuda playing cards. The company went through several small niche businesses before becoming a video game company.

    As the Handheld World Changes, Nintendo Strikes Back

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    patrickklepek

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    Edited By patrickklepek
    Dusty and with a dead battery, the current state of most people's 3DS machines. Including mine.
    Dusty and with a dead battery, the current state of most people's 3DS machines. Including mine.

    No one can say Nintendo isn't taking the tepid response to the 3DS seriously. The cost of buying a brand-new 3DS will drop from $249.99 to $169.99 on August 12, slashing the retail price $80 almost five months after launch.

    "At $169.99, the 3DS is now an incredible value to both gamers and consumers," said EEDAR analyst Jesse Divinich over email to me today. "I think it is safe to say we are unlikely to see another 3DS price cut anytime soon, and the fate of the 3DS hardware will now solely rest on the quality of content. Content, I believe, will shine this holiday season."

    The DS launched on November 21, 2004. By the end of March, Nintendo had sold 5.27 million units worldwide. Nintendo has pushed 4.32 million 3DS units in roughly the same timeframe, but it's crucial to note that's without the benefit of the holidays.

    3DS' future will be better judged after Christmas.

    The biggest release so far has been a remake, while the next major release is...the same thing.
    The biggest release so far has been a remake, while the next major release is...the same thing.

    In the meantime, content is something 3DS has been sorely lacking. The no-glasses 3D trick was not enough to convince consumers en masse that 3DS was worth picking up at $249.99, with games like Pilotwings Resort and Super Street Fighter IV leading the software charge. Last month's The Legend of Zelda: Ocarina of Time 3D was the first substantial release from Nintendo since the hardware's late March launch.

    Sluggish hardware sales have prompted publishers to start quietly pushing content back, in fact. Sega had planned to release both Crush 3D and Shinobi in September, then suddenly announced both would be pushed back several months, with Crush 3D not arriving until 2012.

    Alongside the price cut, Nintendo confirmed release months for Super Mario 3D Land (November) and Mario Kart 7 (December).

    "Nintendo plans to release some of its best content for the 3DS this holiday season and as long as consumers agree," said Divinich, "I foresee no reason to doubt a Nintendo turn-around this holiday season."

    "As long as consumers agree" is the key issue. Nintendo can get away with charging $39.99 for its releases, thanks to brand recognition for its characters and franchises. The problem third-parties have always struggled with on Nintendo platforms in the modern age is competing with Nintendo's tent-poles.

    Complicating matters is the rise of the smartphone as a reliable on-the-go gaming machine. Consumers expect to pay less for mobile entertainment now. Dollar games are plentiful on Apple's App Store, and some of them are terrific.

    Epic Games made $10 million off Infinity Blade and nothing off BulletStorm. Guess which was cheaper to make?
    Epic Games made $10 million off Infinity Blade and nothing off BulletStorm. Guess which was cheaper to make?

    There may be more substance to Nintendo's creations, but what's the threshold of "good enough"?

    The race to the bottom was challenged by Nintendo president Satoru Iwata at this year's Game Developers Conference, where he encouraged developers to continue to assign value to their work.

    “The objectives of smartphones and social network platforms are not at all like ours," he said.

    At the same time Iwata was speaking, Apple CEO Steve Jobs was literally across the street announcing the iPad 2, and revealing Apple had paid developers more than $2 billion through App Store sales.

    Iwata asked developers to avoid the race to the bottom common on iOS and social platforms.
    Iwata asked developers to avoid the race to the bottom common on iOS and social platforms.

    "What I wanted to argue most was that video game developers need to be careful about 'preserving the value of video games' so that the video game industry, regarded as valuable by many people, can be sustainable," said Iwata, reflecting a few months later.

    Combined with Facebook's games explosion, the expectations from consumers for games has changed completely.

    "Consoles used to be 80% of the industry as recently as 2000," said Electronic Arts CEO John Riccitiello in an interview with Industry Gamers. "Consoles today are 40% of the game industry, so what do we really have? We have a new hardware platform and we’re putting out software every 90 days. Our fastest growing platform is the iPad right now and that didn’t exist 18 months ago."

    Nintendo has been slow to encourage development on the eShop, mostly relying on its existing DSiWare catalog and a steady release of revamped "3D Classics." Nintendo's storefront is a better experience on 3DS, but it's hardly the App Store in breadth or ease of use. There are rarely sales on the eShop, let alone demos. Many iOS games happily play with price points to spur attention, and if you're just looking to download a bunch of apps to play with, there's an entire free section to explore.

    Free doesn't exist in Iwata's wheelhouse (unless you're talking about Virtual Console games to early adopters, anyway).

    I'd love to download a bunch of experimental 3D projects for a buck on my 3DS, wouldn't you?

    On WiiWare, Nintendo at one point made a big deal because a small slice of games were honored with the ability to have a demo--temporarily. They eventually disappeared. That's not a way to encourage people to experiment with their dollars.

    One of the more immediate questions outside of Nintendo's financial sphere is how the 3DS price drop will affect Sony's PSP successor, Vita. The industry welcomed Sony's decision to price match 3DS at $249.99 for the cheapest Vita model, and it's unclear whether Sony will be able to adjust any lower.

    Sony did not return my request for comment on the 3DS price drop.

    Sony found a way to price VIta at $249.99, but will they find a way to slice away at the price more?
    Sony found a way to price VIta at $249.99, but will they find a way to slice away at the price more?

    "This price cut does put the Vita in a tough position," said Divinich. "Not to sound like a broken record, but it all comes down to the content and if the Vita can deliver a library of high quality entertainment products, it should be able to thrive at the $249 price point."

    The reason Nintendo dropped to $169.99 specifically may have more to do with margins. Bloomberg Japan reports that Nintendo will be taking a loss on each 3DS sold going forward. One of Nintendo's hallmarks is its ability to turn a profit on all hardware on day one, so whatever the sales outcome of the platform, at least the company is making money. Not anymore.

    "I would suspect that the 3DS is now being sold at near break-even for Nintendo," said Divinich.

    Given that Nintendo's reporting a massive quarterly loss, all bets are off.

    And while no one will question whether Nintendo's move today was bold, will it be enough?

    Iwata traditionally speaks to investors right after a financial report. We should know more about what Nintendo's thinking soon.

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    patrickklepek

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    #1  Edited By patrickklepek
    Dusty and with a dead battery, the current state of most people's 3DS machines. Including mine.
    Dusty and with a dead battery, the current state of most people's 3DS machines. Including mine.

    No one can say Nintendo isn't taking the tepid response to the 3DS seriously. The cost of buying a brand-new 3DS will drop from $249.99 to $169.99 on August 12, slashing the retail price $80 almost five months after launch.

    "At $169.99, the 3DS is now an incredible value to both gamers and consumers," said EEDAR analyst Jesse Divinich over email to me today. "I think it is safe to say we are unlikely to see another 3DS price cut anytime soon, and the fate of the 3DS hardware will now solely rest on the quality of content. Content, I believe, will shine this holiday season."

    The DS launched on November 21, 2004. By the end of March, Nintendo had sold 5.27 million units worldwide. Nintendo has pushed 4.32 million 3DS units in roughly the same timeframe, but it's crucial to note that's without the benefit of the holidays.

    3DS' future will be better judged after Christmas.

    The biggest release so far has been a remake, while the next major release is...the same thing.
    The biggest release so far has been a remake, while the next major release is...the same thing.

    In the meantime, content is something 3DS has been sorely lacking. The no-glasses 3D trick was not enough to convince consumers en masse that 3DS was worth picking up at $249.99, with games like Pilotwings Resort and Super Street Fighter IV leading the software charge. Last month's The Legend of Zelda: Ocarina of Time 3D was the first substantial release from Nintendo since the hardware's late March launch.

    Sluggish hardware sales have prompted publishers to start quietly pushing content back, in fact. Sega had planned to release both Crush 3D and Shinobi in September, then suddenly announced both would be pushed back several months, with Crush 3D not arriving until 2012.

    Alongside the price cut, Nintendo confirmed release months for Super Mario 3D Land (November) and Mario Kart 7 (December).

    "Nintendo plans to release some of its best content for the 3DS this holiday season and as long as consumers agree," said Divinich, "I foresee no reason to doubt a Nintendo turn-around this holiday season."

    "As long as consumers agree" is the key issue. Nintendo can get away with charging $39.99 for its releases, thanks to brand recognition for its characters and franchises. The problem third-parties have always struggled with on Nintendo platforms in the modern age is competing with Nintendo's tent-poles.

    Complicating matters is the rise of the smartphone as a reliable on-the-go gaming machine. Consumers expect to pay less for mobile entertainment now. Dollar games are plentiful on Apple's App Store, and some of them are terrific.

    Epic Games made $10 million off Infinity Blade and nothing off BulletStorm. Guess which was cheaper to make?
    Epic Games made $10 million off Infinity Blade and nothing off BulletStorm. Guess which was cheaper to make?

    There may be more substance to Nintendo's creations, but what's the threshold of "good enough"?

    The race to the bottom was challenged by Nintendo president Satoru Iwata at this year's Game Developers Conference, where he encouraged developers to continue to assign value to their work.

    “The objectives of smartphones and social network platforms are not at all like ours," he said.

    At the same time Iwata was speaking, Apple CEO Steve Jobs was literally across the street announcing the iPad 2, and revealing Apple had paid developers more than $2 billion through App Store sales.

    Iwata asked developers to avoid the race to the bottom common on iOS and social platforms.
    Iwata asked developers to avoid the race to the bottom common on iOS and social platforms.

    "What I wanted to argue most was that video game developers need to be careful about 'preserving the value of video games' so that the video game industry, regarded as valuable by many people, can be sustainable," said Iwata, reflecting a few months later.

    Combined with Facebook's games explosion, the expectations from consumers for games has changed completely.

    "Consoles used to be 80% of the industry as recently as 2000," said Electronic Arts CEO John Riccitiello in an interview with Industry Gamers. "Consoles today are 40% of the game industry, so what do we really have? We have a new hardware platform and we’re putting out software every 90 days. Our fastest growing platform is the iPad right now and that didn’t exist 18 months ago."

    Nintendo has been slow to encourage development on the eShop, mostly relying on its existing DSiWare catalog and a steady release of revamped "3D Classics." Nintendo's storefront is a better experience on 3DS, but it's hardly the App Store in breadth or ease of use. There are rarely sales on the eShop, let alone demos. Many iOS games happily play with price points to spur attention, and if you're just looking to download a bunch of apps to play with, there's an entire free section to explore.

    Free doesn't exist in Iwata's wheelhouse (unless you're talking about Virtual Console games to early adopters, anyway).

    I'd love to download a bunch of experimental 3D projects for a buck on my 3DS, wouldn't you?

    On WiiWare, Nintendo at one point made a big deal because a small slice of games were honored with the ability to have a demo--temporarily. They eventually disappeared. That's not a way to encourage people to experiment with their dollars.

    One of the more immediate questions outside of Nintendo's financial sphere is how the 3DS price drop will affect Sony's PSP successor, Vita. The industry welcomed Sony's decision to price match 3DS at $249.99 for the cheapest Vita model, and it's unclear whether Sony will be able to adjust any lower.

    Sony did not return my request for comment on the 3DS price drop.

    Sony found a way to price VIta at $249.99, but will they find a way to slice away at the price more?
    Sony found a way to price VIta at $249.99, but will they find a way to slice away at the price more?

    "This price cut does put the Vita in a tough position," said Divinich. "Not to sound like a broken record, but it all comes down to the content and if the Vita can deliver a library of high quality entertainment products, it should be able to thrive at the $249 price point."

    The reason Nintendo dropped to $169.99 specifically may have more to do with margins. Bloomberg Japan reports that Nintendo will be taking a loss on each 3DS sold going forward. One of Nintendo's hallmarks is its ability to turn a profit on all hardware on day one, so whatever the sales outcome of the platform, at least the company is making money. Not anymore.

    "I would suspect that the 3DS is now being sold at near break-even for Nintendo," said Divinich.

    Given that Nintendo's reporting a massive quarterly loss, all bets are off.

    And while no one will question whether Nintendo's move today was bold, will it be enough?

    Iwata traditionally speaks to investors right after a financial report. We should know more about what Nintendo's thinking soon.

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    Nac

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    #2  Edited By Nac

    What're we gonna do with you, Nintendo?

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    dbz1995

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    #3  Edited By dbz1995

    If this makes Vita pricing go down, I will be a happy bunny.

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    Sil3n7

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    #4  Edited By Sil3n7

    Nintendo doesn't break even or god forbid, lose money with its hardware. This is crazy.

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    sirdesmond

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    #5  Edited By sirdesmond

    @dbz1995 said:

    If this makes Vita pricing go down, I will be a happy bunny.

    That would be awesome, but I doubt it. I feel like Sony is probably already losing quite a bit on each of those machines (although I don't know that for sure).

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    tds418

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    #6  Edited By tds418

    This is a pretty drastic move by Nintendo. Although I don't have any plans to buy a 3DS, I would hate to see the system fail.

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    BetonneTom

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    #7  Edited By BetonneTom

    Altough it seems more and more like the end of an erra, this is a very interesting subject to think about, the way that the ipad/iphone revolutionized gaming on the go and with it changed the value proposition that was the standard truly is something that will change everything.

    At least nintendo is relatively quick to respond

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    Vexxan

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    #8  Edited By Vexxan

    Christmas time will be crazy.

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    boylie

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    #9  Edited By boylie

    Ugh, I hate that the industry is going in the casual direction. I hate it even more that consumers gave them a reason to.

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    StingerMK2

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    #10  Edited By StingerMK2

    this has been coming for generations, slowly but surely they've been moving away from the core gamer, only to be undercut in the casual market,

    being a long time gamer a big part of me wants nintendo to carry on successfully, but i owned a wii for about 6 months from launch, sold it to a housemate for a bit of extra money for a trip to london, absolutely no regrets, i kind of dont care at this point

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    shenstra

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    #11  Edited By shenstra

    I'm hoping this'll also result in a significant price drop for the DSi XL. I've been eyeing the XL to replace my DS Lite, which is starting to show its age. Hopefully that'd tide me over until Nintendo puts out a new 3DS model (3DS U?) or at least until the 3DS has a more interesting software lineup.

    Unfortunately, the DSi XL is now exactly the same price as the 3DS here in the Netherlands. Maybe the XL will get a price drop on August 12, when major retailers start selling the 3DS again at its new price point.

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    Arath

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    #12  Edited By Arath
    @sirdesmond said:

    @dbz1995 said:

    If this makes Vita pricing go down, I will be a happy bunny.

    That would be awesome, but I doubt it. I feel like Sony is probably already losing quite a bit on each of those machines (although I don't know that for sure).

    I don't think so, I remember hearing that when the Vita was in it's concept stage they started with a price point they wanted to be able to ship the product with, without bleeding money. (quick Google)
     
    http://www.vg247.com/2011/06/08/yoshida-249-vita-pricepoint-aimed-at-from-day-one/
     
    So while they "might" be losing money on units when they ship, I don't think it will be a significant amount. Overall I think the Vita is in a better position than the 3DS was ever at during launch.
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    Bestostero

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    #13  Edited By Bestostero

    mobile devices are taking over handheld

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    CrossTheAtlantic

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    #14  Edited By CrossTheAtlantic

    I read over on Kotaku that Iwata is slashing his salary by 50% and other Nintendo execs by up to 30%. That's nuts.

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    vonFlampanker

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    #15  Edited By vonFlampanker

    I'd really like to see this transition end up at a place where we've got some sort of open platform that's easy for independent developers to work on. Imagine some sort of super robust LittleBigPlanet-like toolset accompanying a Nintendo handheld.

    It's uncomfortable times for Nintendo, and they've landed squarely in stopgap-ville. As a fan of theirs I hope the industry keeps a place at the table for them while they catch up.

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    Sogeman

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    #16  Edited By Sogeman

    The games I'm waiting for are games like A Link to the Past which I never played and not in a 3D version. Just a simple VC release. I never had a SNES so I want to play some classics and not wait forever for them to revamp them in 3D. Also Phoenix Wright and Layton games and Luigis Mansion 2.
    Until those aren't out I'm not buying the system and judging by what seems to be Capcoms strategy (axing games and re-releasing Streetfighter and other Fighting games 4 times), I doubt that day will come soon. I mean they didn't even release the last Miles Edgeworth here so I guess we won't see a 3DS PW anytime soon. :(
     
    I really want that system though. But I bought the DS at launch and didn't have a game for months (parts due to no money but also due to there not being good games) and I'm not making that mistake again.

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    Julmust

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    #17  Edited By Julmust

    Soon it will all be Farmville and Call of Duty.

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    cookiearmyleader

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    #18  Edited By cookiearmyleader

    170 and still like 2 games worth playing no thanks il just get the vita which will acualy have some games

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    JetForceGemini

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    #19  Edited By JetForceGemini

    Who needs real games when we can play iPod games and flash games for cheap or free! Hopefully Apple and Adobe Flash(tm) put the final nail in Nintendo's coffin! 

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    Scrumdidlyumptious

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    I think the Vita will be fine at $250 as it's got a lot of great games for it at launch, from existing IPs to interesting new IPs. No-one expected it to usurp Nintendo's handheld gaming dominance anyway, but it will probably do fine (as long as the US economy doesn't implode) as it doesn't have the same problem with software that the 3DS still has.

    I'm just worried that if the 3DS doesn't pick up in sales significantly at this price point, the smartphone fear mongering crowd will have their way and scare off the easily influenced publishers from the Vita as well before it even comes out by perpetuating the stereotype that people don't want dedicated handheld gaming platforms anymore. So I hope all goes well for Nintendo otherwise everyone might end up with no gaemz!

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    Aronman789

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    #21  Edited By Aronman789

    The problem I have with handhelds is that the games cost  about $40, and that's way too much in my opinion, I could buy like 3-4 games on steam with that.

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    RE_Player1

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    #22  Edited By RE_Player1

    I love my iPad but the games are nothing more than distractions, even Infinity Blade. At least with say the DS I actually enjoy and get invested in games like Layton or Mario and Luigi Inside Story. The Vita's price won't drop further, they already cut it, and dedicated handhelds aren't going anywhere at least in my life.

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    vonFlampanker

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    #23  Edited By vonFlampanker

    @StingerMK2 said:

    this has been coming for generations, slowly but surely they've been moving away from the core gamer, only to be undercut in the casual market,

    being a long time gamer a big part of me wants nintendo to carry on successfully, but i owned a wii for about 6 months from launch, sold it to a housemate for a bit of extra money for a trip to london, absolutely no regrets, i kind of dont care at this point

    You're right on. The Mario Galaxies and Kirby Epic Yarns are too few and far between. I wonder if Nintendo is starting to get bitten by its pattern of so many re-releases? Do you feel like you didn't miss anything selling off your Wii so early because you'll just catch up on the good titles on a future platform.

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    crusader8463

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    #24  Edited By crusader8463

    The 3D holds zero appeal to me because I'm blind in my right eye so I will never be able to use it, and so far there haven't been any games released or announced that are worth buying an entire system for. I said the same thing, minus the 3D, when the PS3 first launched and now I have bought the system 3 times over and have a shelf full of PS3 games so time will tell what this system becomes. A lot can happen in a few years, but if they ever want me to buy one they are going to need some games.

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    confideration

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    #25  Edited By confideration

    I can't get my 5yr old to play with my DS. I won an iPod touch at a golf event and gave it to him and he much prefers that.

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    CyleMoore

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    #26  Edited By CyleMoore

    I wish you luck Nintendo, I still have faith in you.  I will finally be picking up a 3DS once the price goes down, I just wish that the games would drop $5-$10.

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    ryanwho

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    #27  Edited By ryanwho

    I'm surprised Infinity Blade made any kind of money. Just shows how disconnected people here are from the market that actually matters now.

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    jozzy

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    #28  Edited By jozzy

    @JetForceGemini said:

    Who needs real games when we can play iPod games and flash games for cheap or free! Hopefully Apple and Adobe Flash(tm) put the final nail in Nintendo's coffin!

    That's the thing though, for gaming on the go you really don't need "real" games, same for casual gamers that play a little angry birds when they have half an hour to spare. Like Patrick says: those games might be good enough.

    Most gamers rather play their consoles or pc games at home instead of a handheld.

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    MisterMouse

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    #29  Edited By MisterMouse

    It is crazy how much the various iOS devices and android devices have affected this market.

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    wedgeski

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    #30  Edited By wedgeski

    When is everyone going to realise that we're NOT the core gamer any more? It may be a painful revelation, but we're gonna have to live with it. $30-60 games will soon be a minority market, if they're not already. By definition that makes the consumers of those games the minority gamer, and the iOS and Android acolytes the new "core".

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    kagato

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    #31  Edited By kagato

    I dont see the move as being anything but smart, anytime Nintendo hold a price point too long they end up loosing out to the competition. There is nothing wrong with reducing the price if you realise the customers arent buying, as others have said its all about the software at this point so they need to encourage the 3rd parties as much as they can. Im so sick of people with iphones claiming every game Nintendo/Sony sells should be $2, the mobile phone market is disposable, no sonner has peggle reached number one before it has been tossed aside for Angry birds. Lets see if we get an Angry Birds 2 or Peggle 2, will it make millions of pounds and blur the boundery between movies and games? I somehow doubt it..

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    GoodKn1ght

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    #32  Edited By GoodKn1ght

    Sold.

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    Thor_Molecules

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    #33  Edited By Thor_Molecules

    Excellent read. 
    I don't really feel bad for Nintendo, they worked themselves in this position, now let's see them get out of it.  
    The 3DS disappoints me in almost every way, the hardware, the software, the design, it all feels very rushed.

    The price cuts are a good start to turn things around, now make sure your third parties are happy, or they will all jump ship towards Sony, because they seem to be doing everything right so far with the upcoming Playstation Vita. 
     
    Time will tell, but i'm very curious to see how this handheld "battle" is going to develop later this year.

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    sirdesmond

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    #34  Edited By sirdesmond

    @Arath said:

    I think the Vita is in a better position than the 3DS was ever at during launch.

    Personally, I don't think that the 3DS should have really launched until September. It seemed pretty obvious to me that they were just trying to get a significant install base in before Vita dropped but didn't have all the software for the 3DS (like the browser) or any of the big-hitting games, and still don't really. I got a 3DS shortly after launch and I think it's a great system, but I would love to have more stuff to play on it...

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    Lonely_Ogre

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    #35  Edited By Lonely_Ogre

    I never really believed the rumors, but many people were saying that the Wii U will support 3ds as controllers, the price drop would help that, if that were true.

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    gosukiller

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    #36  Edited By gosukiller

    Calling 80 bucks "nearly 100 dollars" kinda got to me, but I'll let it slide.

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    Thoseposers

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    #37  Edited By Thoseposers

    I honestly do not understand the desire to play mobile phone games at all. Their quality is nothing compared to normal console games or handheld games.

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    Yanngc33

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    #38  Edited By Yanngc33

    I find it really sad that iphone games are taking over. Metroid Fusion, my favorite game of all time, is a handheld game. I have great memories of playing games on gbc and gba and it sucks that people would rather play on their phone

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    Elazul

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    #39  Edited By Elazul
    @gosukiller said:
    Calling 80 bucks "nearly 100 dollars" kinda got to me, but I'll let it slide.
    Yeah, it's almost as bad as saying that a four month old console launched "almost six months" ago, like every 3DS related story GB has posted in the last couple of days has.
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    JetForceGemini

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    #40  Edited By JetForceGemini
    @jozzy said:

    @JetForceGemini said:

    Who needs real games when we can play iPod games and flash games for cheap or free! Hopefully Apple and Adobe Flash(tm) put the final nail in Nintendo's coffin!

    That's the thing though, for gaming on the go you really don't need "real" games, same for casual gamers that play a little angry birds when they have half an hour to spare. Like Patrick says: those games might be good enough.

    Most gamers rather play their consoles or pc games at home instead of a handheld.

    Those games just might be good enough for casual gamers, I'm not going to argue against that. The DS had a large amount of non-casual games and they sold very well. I'm one of those people who mostly plays pc games and consoles, but I will still always want a good portable gaming system for traveling and such. Asking $250 for the 3DS was a mistake. I don't want a handheld to replace my console, I want it to complement it. It can't do that when it cost basically the same price. 
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    FacestabMan

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    #41  Edited By FacestabMan

    All the 3DS needs is good support from third parties.

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    gosukiller

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    #42  Edited By gosukiller

    There is not yet a 'Killer App' that would sell me on a 3DS. I'll keep my fond memories of Star Fox and Ocarina from my childhood, thanks!
     
    Also, since I prefer the look and feel of the Dsi XL, I would still hold off on a purchase untill a "3ds XL" would get released.

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    SpudBug

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    #43  Edited By SpudBug

    meh. iphone games are really only important to people who probably wouldn't have bought a 3DS until it was $100 anyway.

    Kids do get hand me down iphones sometimes but that's a pretty small part of the country. I think sometimes games journalists assume everyone can afford/wants an iphone/smartphone and a data plan. If you don't live near or in a city, 3G data coverage is still pretty spotty in some parts of the country.

    The DS launched on November 21, 2004. By the end of March, Nintendo had sold 5.27 million units worldwide. Nintendo has pushed 4.32 million 3DS units in roughly the same timeframe, but it's crucial to note that's without the benefit of the holidays.

    This is the most telling quote in the article. In the same timeframe, without the benefit of the holidays, and at almost $100 more than the original DS, 3DS is behind by about a million.

    Isn't that pretty much what you'd expect for it not launching during the holidays and at a higher price point?

    Iphone and Ipad and all the rest are certainly having an effect on 3DS but I think that effect is minimal. Mario Kart isn't on Iphone. And the clones of it just feel cheap and dumb. Super Mario 3D Land isn't on iphone, and certainly there's no equivalent on ios. There's a pretty good chance that both of those titles are going to be very popular and do well at full retail price for years to come. (have you seen what Mario Kart DS and NSMB DS go for at wal-mart or target? yep, still $34.99)

    It's funny that so many gaming sites praise a platform that gets maybe 10 truly good titles a year among hundreds of thousands of shovelware, scam, copycat, and downright copywright infringing apps. Many times this crappy software gets pushed to the top the charts at the whims of children and the most casual of gamers, burying truly original indie efforts and condemning them to sales in the single hundreds digits.

    If that's the future of the gaming industry, we should all be scared.

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    Lunar_Aura

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    #44  Edited By Lunar_Aura

    @SpudBug said:

    If that's the future of the gaming industry, we should all be scared.

    It is, and I am. As time goes on my taste in gaming sadly draws further toward the minority niche with the exception of fighting game genre. Quality indie games like Gemini Rue, big budget risks like Okami, and many other games like it have little or no monetary incentive to be made in the future. Some games like these are made for the sheer love of the gaming medium but the sad reality is that love doesn't pay the bills. Anyway, the dedicated handheld as we know it is dying but only time will tell if it truly will die.

    Vita looks like it's willing to adapt by adding phone capability but if all it can do is be like a PSP with phone capability then it's gonna get ngage'd pretty quickly. Sony needs to be on par or exceed Apple's app store distribution and I will be rooting for Sony 100% because it doesn't look like Nintendo is willing to budge from their prehistoric distribution model and rehash-game sales theories. Sony might be the only hope left to keep dedicated portable gaming alive.

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    jkuc316

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    #45  Edited By jkuc316
    @boylie said:
    Ugh, I hate that the industry is going in the casual direction. I hate it even more that consumers gave them a reason to.
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    mracoon

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    #46  Edited By mracoon

    Comparing 3DS sales up to this point with initial DS sales, the 3DS has done pretty well all things considered. I mean the Japanese earthquake, general economic downturn and releasing in a non-hoilday season are all going to make a dent in sales so 4.32 million sold is nothing to scoff at.

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    CaptainComedy

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    #47  Edited By CaptainComedy

    I don't really get why people are screaming and horrified that iOS has risen to become a legitimate, important platform to the games industry as a whole. I have a DSi, I have an iPhone, and I love playing games on them both. I don't have a 3DS because it isn't different enough from either of the handhelds I already have to warrant dropping $160, much less $240!
     
    It's astonishing to me how ready and willing self-described "real gamers" are to segregate themselves from "the rest of the market" as though doing so is an inherently good thing. You aren't somehow better, you're just different! We're all different! Live and let live, guys!

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    MrHammeh

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    #48  Edited By MrHammeh

    @mracoon said:

    Comparing 3DS sales up to this point with initial DS sales, the 3DS has done pretty well all things considered. I mean the Japanese earthquake, general economic downturn and releasing in a non-hoilday season are all going to make a dent in sales so 4.32 million sold is nothing to scoff at.

    I totally agree, I mean with the horrible release of "good" software for the 3DS since its release I am surprised its sold that well to be honest. Maybe Nintendo has learned its lesson now that it cant rely on people buying its products anymore just on the merit of it being Nintendo. I would be interested to see if this changes with the next hardware from them such as the WiiU.

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    demarcon

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    #49  Edited By demarcon

    How are they losing money on every console sold now? The 3ds has $100 in parts in it.

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    SeriouslyNow

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    #50  Edited By SeriouslyNow

    Guys the games industry has gone mass market. You wanted your hobby to be legitimized, well this is the first real step. We'll have casual shit for a decade or so and in the midst of that more specialisation will evolve again. Don't worry, out of the ashes of casual gaming Derek Smart will rise again!

    This edit will also create new pages on Giant Bomb for:

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