Nintendo Won’t Cut Prices To Compete With Smartphones And Tablets
This Thursday Nintendo president Satoru Iwata said that price cuts for the Wii U are not an option and that the only possible future for Nintendo is to become profitable through its main business even with smartphones and tablets taking more and more money away from game machine producers.
The conference came a day after Nintendo announced its fourth quarter earnings, where figures showed that sales of their Wii U and 3DS slowed down exactly at the crucial year end, during the holiday season.
Even with the decrease in sales, Iwata said that no price reduction is in the works and that their products are already sold at competitive prices.
He acknowledged that the recently released Wii U will need some time to become competitive and that new software and a better presentation of the product are needed to increase sales.
With smartphones and tablets getting more and more powerful with more sophisticated software, they have become a threat to dedicated game machines, causing most companies that produce them to suffer losses.
Nintendo also had high hopes for the hand held 3DS, a portable game machine that renders 3D images without the specially designed glasses. However, the product has not yet lived up to Nintendo’s expectations and its sales are pretty low in most markets.