14 DAY TRIAL // Nintendo made the surprising move of slashing the price of the 3DS handheld to 169 dollars just a few months after the original launch date and a number of analysts watching the video game industry are saying that the main motivation for the cut is the upcoming launch of the PlayStation Vita from Sony.
David Cole, who is an analyst with DFC Intelligence, has told IndustryGamers that, “I just looked at their revised financial forecasts and they are ready to take a hit.“They are really being aggressive. It is very unlike Nintendo to be willing to take such a loss. I think what it says is that they really feel the heat from the Sony Vita.”
The analyst believes that Nintendo has cut the price of the 3DS in order to make sure that it keeps its market share in the handheld market and calls it an aggressive defensive action.
Colin Sebastian, who works with RW Baird, has added, “It was clear that Nintendo had a problem on its hands with the 3DS, and I think they are acting aggressively to try and save the platform. For that matter, any new platform has to be very considerate of the initial price point, but that is art as well as science, so I am not sure whether Sony will find it necessary to lower the Vita price.”
Sony has already announced that it will be pricing the Vita at 250 dollars on launch day and two other analysts, Billy Pidgeon from M2 Research and Jesse Divnich from EEDAR, believe that the company must now respond to the price cut from Nintendo.
It could either reduce the price tag of its own handheld or offer something extra to those who purchase it.
The PlayStation Vita does not yet have a launch date, but Sony maintains that it will be launched on at least one major market before the end of the year.