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Nintendo had tried to save their unsuccessful 3DS handheld games device, but was unable to disperse market gloom. The market is extremely worried for Nintendo, the iconic company which now anxious to win back users. Recently, President Satoru Iwata released – in his opinion – a unique set of games in order to attract various different gamers, including the fans of the Mario series and harcore gamers. A new slidepad accessory, which is needed for some games, was also released on their website for 1,500 yen ($19). However, the line-up was largely rejected by investors and analysts and was considered uninteresting compared to the numerous free games available on iPhone, iPad and various other devices with Google powered Android.
Nintendo has been frequently condemned strictly sticking to its hardware, without having access to the most recent mobile devices. According to Mitsushige Akino, chief fund manager at Ichiyoshi Investment, the recent games will fail to produce any difference, as most people are perfectly happy with their games available on their mobile phones. The shares of the company have dropped almost 50% this year, due to the failure of the 3DS and to the serious doubts regarding the success of the new Wii U. Nintendo was forced to cut prices with up to 40% in July, as an attempt to encourage demand for the 3DS, but this only leads to temporary results.
Iwata revealed that Nintendo plans include a wide ranging line-up which is unprecedented in the world of video games. Iwata also said that they are confident that the 3DS will manage to be the successor to the DS. That is going to be a tough job, as the previous Ninteno DS emulator models have been sold in about 148 million units by June this year. This device made possible – along with the Wii home console – for Nintendo to lead the gaming industry for years. According to research form Enterbrain, 3DS game sales in Japan exceeded 200,000 units in a week (during the price cut), but then quickly dropped back to only 55,000 units. According to Makoto Kikuchi, CEO of Myojo Asset Management, Nintendo could revive if they would focus on Wii games for the entire family. However, that change is hard to see at the moment. Iwata and other executives took responsibility for the product’s poor performance, accepting 50% and 20%-30% pay cuts.
Market analysts have cut their forecasts for Nintendo’s operating profit by roughly 45% in the last 30 days. Nintendo has cut the price of the 3DS after selling only 710,000 units from April to June, after they have managed to sell 3,6 million units in the month following the launch of the device. However, David Gibson from Macquarie Securities anticipated that the 3DS will be sold in about 14,5 million units throughout the year.