Iwata explains the reasons of 3DS's price cut; gives it 4 months to resurrect

Billychu said:
Not to mention the wavering support of their hardcore fans who would be there day one and the fact that its playing catch up with this year's holiday games as launch titles.
Anecdotal but I have three fairly "core" friends who own 3DSs and they don't feel burned at all to my knowledge. They have fun playing the few games they own for it, they know more are coming eventually, and I've never picked up a sentiment of "this was a waste of money"
Not everyone buys games the way GAF does. For some people buying a new game for a platform every two months or so is perfectly acceptable.
 
Plinko said:
1. They're not lowering DSi prices, which will kill off the DS.

That's double-edge sword here.
If the NDS was alive and expanding, it could mean a sale transfer toward the 3ds, but it's not. It's dying and old. Thus it could reinforce the idea some consumers have that the 3ds is the same as the nds, now that it's even almost the same price...

darkside31337 said:
Nintendo desperately needs to relaunch the system with new marketing that actually drills the point home, that the 3DS is not just a new version of the DS but an entirely new system in itself.

For that they would have had to name it, and design it differently to begin with. Nintendo pays the price for not wanting to cut the bridge with its past success, when the momentum is long gone... It will be the same for the wiiu
 
Billychu said:
I hope this doesn't scare western devs away from the Vita.
No reason for it to do that unless it doesn't sell either.

Launch lineup looks good, it has that high end gadget look and feel and the price is right so it should.
 
eXistor said:
Not likely. I think the problem is indeed identity. People think it's a DS with 3d, not a new system.
That could be a real problem. I remember how people thought the Game Boy Color was just a Game Boy with color despite the fact it had twice the processing power and could run much more impressive games than the original GB.
 
neptunes said:
Let me get this straight, Iwata is hoping people will buy the 3DS purely on the new pricepoint and not because of the software?

If the software was there the price wouldn't have been an issue.

I think it still would have been. What made the DS and the Wii so successful was the combination of software that illustrated the unique value of the hardware, with a pricepoint for each that didn't act as a barrier. [Hell, the Wii was underpriced, it was so damned appealing and innovative in design.]

What the 3DS provides is simply not as compelling to the mainstream consumer. Even when quality software from Nintendo hits, I have great doubts if they'll be able to produce something that fully brings to the fore any benefit the 3D display provides. Why? Because I don't think it has any.
 
I think its a great move. I don't think its really a gamble at all. What Iwata is basically saying is that he wants the hardware to expand before releasing big titles. This will do exactly that. Give a short term boost and let the big titles handle the rest.
 
darkside31337 said:
I know it sounds crazy but what if it doesn't kill off the DS?

Plenty of people may still buy a DSi/XL instead of a 3DS even if they are the same exact price.
Nintendo has been that woefully ineffective at marketing the 3DS. A lot of people aren't interested in the 3D effect, have no idea how it works exactly, have no idea that you have the option of turning it off, and most importantly have no idea that it's actually the newest system and not just a new iteration of the DS.

It would not shock me that even with the DSi/XL and 3DS being nearly the same price the sales difference doesn't isn't that drastic and far from kills the legacy DS line.

Nintendo desperately needs to relaunch the system with new marketing that actually drills the point home, that the 3DS is not just a new version of the DS but an entirely new system in itself.

It all comes down to new marketing. Apparently in the new marketing they are all but screaming about the fact that it's a new system.

First thing Nintendo needs to do is send a rep to every retail store chain and make sure they separate the 3DS stuff from the DS stuff. My Best Buy still puts them in same rack and mixes 3DS and DS games. No wonder there is market confusion.
 
However, for the management to show its accountability for the level of the operating loss of this time and the prospect of no interim dividend, we decided at the directors' meeting yesterday that we would reduce the compensation we will receive as the directors of the company. The directors’ compensation of the company constitutes a fixed portion and a variable portion which is decided by the actual results of the business performance. The decreased profit of the company is reflected as the decreased compensation in the variable portion or, more specifically, the bonus to be given at the end of this fiscal year. However, we understand that the management responsibility this time is heavier than usual, and we have decided to reduce the fixed compensation as well, by reducing it by 50% for the president, or me, a 30% reduction for the representative directors and a 20% reduction for the other directors.

Wow, huge respect for this guys, if only a lot of directors of companies in Spain would do the same...
 
I think the japanese line-up is pretty good, many interesting games coming from both first and third parties.

Nintendo 3DS will be fine this holiday season.

BurntPork said:
Not if they kill it in four months. That timeline is suicide. In four months, their stock will be non-existent, and the only way they'll regain the trust of investors is by going third-party. Giving a timeline like this was the dumbest thing Iwata could have done.
You are doing the most.
 
orioto said:
That's double-edge sword here.
If the NDS was alive and expanding, it could mean a sale transfer toward the 3ds, but it's not. It's dying and old. Thus it could reinforce the idea some consumers have that the 3ds is the same as the nds, now that it's even almost the same price...

Again, marketing.

I'll never buy the idea thrown around here that this is a horrible idea because "people will look at the price drop and think it's a horrible product!" I've never met anyone who thought that way.
 
SneakyStephan said:
No reason for it to do that unless it doesn't sell either.

Launch lineup looks good, it has that high end gadget look and feel and the price is right so it should.
Eh, we'll see. The launch lineup is better then the 3DSs, but not by much. I doubt people are going to buy a whole new device to play portable ModNation or portable LBP.
Basically Vita launch is going to have a bunch of games that will certainly be nice to play, but I don't really see anything that's going to push units in a "I need that game" way.
 
Sammy Samusu said:
I think the japanese line-up is pretty good, many interesting games coming from both first and third parties.

Nintendo 3DS will be fine this holiday season.

Schedule for Japan please?
 
Only have 2 games for my 3DS right now:
-SSFIV
-Zelda OoT

I'm done with both of them, and no others games are catchy enough for me, 3DS is collecting dust. Bring more awesome games and I'll buy them.

On my waiting list:
-Kid Icarus
-Starfox 64 3D
-MAYBE RE:Revelation...I'm not even sure if it will be good, and Capcom is pissing me off A LOT these time, we'll see in due time.

So yeah...3 games, it definitly needs MOAR!
 
Stumpokapow said:
You're getting a reputation. That's not a good thing.
Getting? I've never placed anyone on this board in my ignore list and I don't plan to but I stopped taking his/her posts seriously weeks ago.

It really strange to see Nintendo reacting so aggressively to slow 3DS hardware sales considering how complacent they've been in the past when the Wii and DS went through software droughts and their resulting hardware lulls. It makes me think that there's more going on here behind the scenes that simply concern that the 3DS isn't meeting sales expectations and it's that the entire approach they took regarding its launch has backfired.
 
Graphics Horse said:
Is there some mistranslation here?
Is saying 4 months simply a way of avoiding the same situation at the next shareholder's meeting?
He wants them to wait until after Mario Kart is out and the November sales come in.
 
Akainu said:
uh huh...maybe I missed it but does he just admit to being greedy? Probably not.

It's implied by the fact that he's the CEO of a damn corporation, not a non-profit charity. In fact, when you read any comment by any executive from any for-profit company, you should receive the subliminal message "We want your money, we really want your money" every single word.
 
Vinci said:
I think it still would have been. What made the DS and the Wii so successful was the combination of software that illustrated the unique value of the hardware, with a pricepoint for each that didn't act as a barrier. [Hell, the Wii was underpriced, it was so damned appealing and innovative in design.]

What the 3DS provides is simply not as compelling to the mainstream consumer. Even when quality software from Nintendo hits, I have great doubts if they'll be able to produce something that fully brings to the fore any benefit the 3D display provides. Why? Because I don't think it has any.

Its still just a small portion of what the system can do. It has gyros and camera's. Streetpass could be big as well. Its not only a 3D DS really. I'm hoping they bring some innovative stuff with these features as well.
 
They need to work their asses around the clock for some heavy hitters besides M/MK. Get Team Bondi on it. They know how to make long hours. Get Pachter to manage the payroll.

Stupid jokes aside. I am sure the 3DS combined with M/MK will do awesome this holiday season but will it be enough to be jolly for Iwata and his posse. Can they pull a turnaround? They just need to do a steady stream of first party heavy hitters every month well into the new year. They are making it real hard for themselves with a low stream of games for Wii and 3DS. Not much worth buying for the "old" Wii. Not much worth buying for the "new" 3DS.

Sure they got R&D and devs on WiiU. But the present is causing them and us the hair pulling. So get on the now. The pricedrop and 2 games are a sign of things to come. But they cannot sit back and count on just those 3 things. Get on a Brain Training 3D or aTetris-ish game. Get the new Crossing out sooner, whip the guys behind Smash. Just keep the consumer interested and occupied with your shit and you will get their monies...
 
Nintendo are going to be fine, they'll have a massive marketing campaign this christmas to make sure 3DS sells huge numbers, I expect Mario will be all over the TV before long
 
Saint Gregory said:
Getting? I've never placed anyone on this board in my ignore list and I don't plan to but I stopped taking his/her posts seriously weeks ago.

It really strange to see Nintendo reacting so aggressively to slow 3DS hardware sales considering how complacent they've been in the past when the Wii and DS went through software droughts and their resulting hardware lulls. It makes me think that there's more going on here behind the scenes that simply concern that the 3DS isn't meeting sales expectations and it's that the entire approach they took regarding its launch has backfired.

i think you are right. Some guy tweeted the whole Q&A and there are some interesting things there, but no one seems to care.
 
neptunes said:
Let me get this straight, Iwata is hoping people will buy the 3DS purely on the new pricepoint and not because of the software?

If the software was there the price wouldn't have been an issue.
But it isn't yet. He can drop the price within two weeks, he can't pull AAA games out of his ass by mid August.
 
Ignoring burntpork's staggering lack of reading comprehension and amazing ability to draw ridiculous conclusions out of thin air, I think Iwata is asking investors not to judge the 3ds or start considering moving their stock until the end of the holiday season. The holidays is when Nintendo traditionally flourishes so the effectiveness of this price cut won't he known until the holiday season is over. Iwata isn't saying Nintendo is going to cease production of the 3ds after the holidays if it sells poorly.
 
So basically:

"We dun goofed, but look we are taking a pay cut so you guys aren't so mad at us...."

Nintendo Fan boys:
"OMG, look at what a BOSS Iwata is, taking responsibility and all that shit....I'm going to go buy 5 now!"

Handheld market is dead people, they can give the damn thing away for free, when you have virtually no games and the games you do have are 40 bucks it's hard to compete with a pocket computer that has a basically unlimited number of cheap or free games.

If Nintendo wants to be in hardware, they need to totally focus on the next Wii, rename it something that is not hideous, and make sure it's a true next gen system that is leaps and bounds better than the 360/PS3 with an amazing online component. If they don't, we will be having another one of these threads in about 2 years.
 
ksamedi said:
Its still just a small portion of what the system can do. It has gyros and camera's as well. Streetpass could be big as well. Its not only a 3D DS really. I'm hoping they bring some innovative stuff with these features as well.

It's the primary bullet point used for selling the system. It's what the system is built around. It's in the friggin' name. Yes, it has this, that, and the other thing - but so long as Nintendo has a hard-on for the 3D screen, most of its content created for the system will be made to highlight that and take little advantage of what else it brings to the table.

And that's a problem.

I mean, if they end up proving me wrong and bringing out software that dramatically highlights and puts to innovative use those other features, that's great - but I'm doubting it.
 
evangd007 said:
Why do people still doubt the 3DS at $170? It's at the same price as a DSiXL and only $20 more than a DSi now, and those two are still selling well in the Americas for no apparent reason.
Because it's mostly kids that want the DSi, and their parents will be scared off by the 3DS's warnings. The 3D made it dead-on-arrival. Even worse, since DS games don't look good at all in the 3DS screen, there's still a reason for even older gamers to choose the DSi over the 3DS. Nothing short of the best library ever could save it, and that's not what it's getting. Even if it survives, it'll be Nintendo's least successful handheld BY FAR, which is why investors want Nintendo to move on to iOS.
 
Billychu said:
I hope this doesn't scare western devs away from the Vita.

This assumes that western devs were there in the first place. :P It certainly won't drive them towards 3DS to any significant degree, though!
 
I'll say this at least. Iwata is still the most straight talking corporate officer in the game industry. In a backhanded way this statement makes Reggie look really, really bad with his Shield of Deflection PR style. (I realize of course that poor Reggie's job is to just be that shield for the mama-mia ship in Japan.)
 
JoeTheBlow said:
Its the middle of summer, sales are the lowest for years for everyone.
Amazed they never waited till Sept/Oct for this, the sales figures must have really scared the shit out of them.
*keeps reading* Retailers decide how much Christmas stock to buy in based on summer sales? What?

edit: for the inevitable "they need to stop people confusing it with the regular DS" posts, the adverts attempting to do that are going out, first seen in the UK.
I expect them to combine these adverts with a real attempt to make retailers reduce DS displays. The gloves are off, they have to kill off the DS asap.

It's about damn time. I hope a version of that goes up in America and that is exactly like that. It gets right to the point and shows off the power of the system.
 
Nirolak said:
He wants them to wait until after Mario Kart is out and the November sales come in.

What I cannot stop thinking in this giant move is that Nintendo is solely relying on the power of the Mario's franchise. I think this is maybe even the first time they are giving the destiny of an entire system in the hands of a single brand. Even if as powerful as Mario.

It's a big gamble. Point. It would be much better to have "secondary games" to ship at the same time to give the handheld more "consistency".
 
The_Technomancer said:
Anecdotal but I have three fairly "core" friends who own 3DSs and they don't feel burned at all to my knowledge. They have fun playing the few games they own for it, they know more are coming eventually, and I've never picked up a sentiment of "this was a waste of money"
Not everyone buys games the way GAF does. For some people buying a new game for a platform every two months or so is perfectly acceptable.
I was talking more about the Wii and Wii U there.
 
Vinci said:
It's the primary bullet point used for selling the system. It's what the system is built around. It's in the friggin' name. Yes, it has this, that, and the other thing - but so long as Nintendo has a hard-on for the 3D screen, most of its content created for the system will be made to highlight that and take little advantage of what else it brings to the table.

And that's a problem.

I mean, if they end up proving me wrong and bringing out software that dramatically highlights and puts to innovative use those other features, that's great - but I'm doubting it.

Yeah I agree here. They really haven't highlighted any of the features at all really. Not even the 3D. They need more games playing to various strengths of the system.
 
Lord Ghirahim said:
I don't think Iwata is that remorseful. The system is still region-locked. A region-locked portable console. In 2011.

One of the biggest things keeping me away from the system aside from lack of games, really.
 
This can only end two ways, Nintendo will set their brightest and best marketing minds to work to create the biggest short term comeback the videogame world has ever seen instantly turning Iwata into the 'hero' once again. Or they still can't convince consumers to pick up the 3DS during the summer and autumn in which case Iwata's position becomes more vulnerable and we get another round of 'Apple ftw' articles.

I consider Iwata one of the smartest CEO's in the gaming biz but his recent actions are questionable. Between the GDC "iOS market devalues games" speech, "We passed on Kinect" comment, their next 'big things' like the Vitality Sensor in limbo or not performing according to expectations, Nintendo's position isn't as strong as it was.
 
x-Lundz-x said:
So basically:

"We dun goofed, but look we are taking a pay cut so you guys aren't so mad at us...."

Nintendo Fan boys:
"OMG, look at what a BOSS Iwata is, taking responsibility and all that shit....I'm going to go buy 5 now!"

Were you here during the Sony apology for the data breach? People were saying the same thing.

Guess what: Consumers like it when corporate leaders acknowledge their mistakes and apologize to the public. That shouldn't be news to you. Applying that to only "fanboys" is idiotic and shows no thought whatsoever.
 
Azih said:
It's kinda weird; even during the depths of the Gamecube era Nintendo never lost money.

Q1 2004: they did. Anyway they're not planning to have losses for the entire FY2012. But for the first 6 months: yes (this is really a first!).
 
Mr_Brit said:
If it doesn't revive by the end of the year, does that mean we'll get a new Gameboy?

Minus the second screen, it's exactly what the Gameboy would have been anyways. It's Gameboy in all but name.
 
BurntPork said:
Because it's mostly kids that want the DSi, and their parents will be scared off by the 3DS's warnings. The 3D made it dead-on-arrival. Even worse, since DS games don't look good at all in the 3DS screen, there's still a reason for even older gamers to choose the DSi over the 3DS. Nothing short of the best library ever could save it, and that's not what it's getting. Even if it survives, it'll be Nintendo's least successful handheld BY FAR, which is why investors want Nintendo to move on to iOS.
Nintendo moving to ios only would be a terrible loss to gamers everywhere. 3ds isn't doa, just wait and see.
 
Kagari said:
One of the biggest things keeping me away from the system aside from lack of games, really.

Probably has something to do with the quite heavy piracy DS enjoyed in the last few years. Bad thing for the consumer, that's for sure.
 
Graphics Horse said:
Is there some mistranslation here?
Is saying 4 months simply a way of avoiding the same situation at the next shareholder's meeting?
He's saying to wait until Christmas is over and they've had their first holiday boom for the 3DS. What's so hard to understand about that?
 
Nirolak said:
He wants them to wait until after Mario Kart is out and the November sales come in.

For some reason I was assuming he meant 4 months from the start of the July-September quarter, but that's not how he phrased it. Saying 5 months might have been a better idea though with MK out in December.
 
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