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Nintendo 2DS: a good short-term idea, admission 3D was “under-used” by younger audiences – analysts

Wednesday, 28th August 2013 21:30 GMT By Stephany Nunneley

Analysts have weighed-in on Nintendo’s 2DS announcement today, and while it seems to make commercial sense for the younger market, the firm still lacks a compelling games lineup, and mobile will still continue to cannibalize the portable market.

According to Wedbush Morgan analyst Michael Pachter, 2DS and the Wii U price-cut may help the company near-term, but doesn’t address underlying problems within it.

“We expect the price cut to drive higher sales, but believe the Wii U will remain challenged by a lack of compelling first- and third-party content this holiday,” Pachter said. “By the time a significant number of high-profile Wii U games have been released, Microsoft’s Xbox One and Sony’s PS4 will have launched, creating direct next generation competition and impacting any potential lift from those titles.”

Pachter said he expects 2DS to help raise company sales by 25% and pad the firm’s original guidance on hardware shipments.

Nintendo’s annual 3DS system sales are expected to reach 17.4 million this year, according to Pachter, just below guidance of 18 million and software should hit around 72.9 million unit sales – short of Nintendo’s 80 million guidance.

For IHS director and head of games, Piers Harding-Rolls, the 2DS launch makes sense as younger handheld gamers are less likely to overlap with smart device users which are typically used by the 18-35 male demographic.

“Unlike Sony with its PS Vita, this younger consumer is Nintendo’s core user for its handhelds, and the 3DS, while performing better since 2012, is still relatively expensive and also able to display 3D, which carries a warning for younger children,” said Harding-Rolls in an industry note sent to VG247.

“IHS forecasts that Nintendo will sell-through just under 10 million 3DS devices in the second half of 2013. While we believed that Nintendo’s 3DS shipment forecast of 18 million units for this financial year was a stretch, the news of this 2DS launch makes that forecast for its handhelds much more achievable.”

He also believes that launching a cheaper, non-3D, “non-hinged product,” fills a hole left in Nintendo’s portfolio created by the decline of its original DS platform, and removed the pricing pressure on the higher-end 3DS and provides an up-sell.

“Launching a 2D version of the 3DS is also an admission that for many younger users the 3D aspect of the device was under-used and not of that much interest,” Harding-Rolls continued. “Overall, this move allows Nintendo more flexibility to engage a wider audience while protecting its hardware margins across its handheld devices.”

Nintendo will launch its new 2DS system in North America on October 12, the same day as Pokémon X and Pokémon Y, for the suggested retail price of $129.99.

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6 Comments

  1. pcbros

    The design might be questionable but I think they made a smart move. I for one like the 3D effect but I did sometimes feel it caused a slight headache. And finding the perfect angle was sometimes a bit annoying.

    Maybe we will see a Nintendo HDS in the future…

    #1 1 year ago
  2. mistermogul

    I have not been much of a fan of Nintendo’s recent hardware.

    Ok this is not aimed at me but it still looks terrible imo. Then there’s the horrendous Wii Mini and toy-like Gamepad.

    Nintendo have compared themselves to Apple before, however their hardware is a world apart.

    #2 1 year ago
  3. pcbros

    I have to wait until I see the 2DS in person before I can pass judgement. I personally like the Gamepad. The Wii Mini… is that even around? lol… Not on Nintendo’s, Newegg’s or Gamestop’s site.

    #3 1 year ago
  4. xino

    Stupid nintendo.

    why don’t they just reduce the damn price for 3ds? they don’t want to, they want the price to be high. SO they can release another device that is pricey so people can buy it.

    play 3D enabled game on 2D system wtf?

    #4 1 year ago
  5. pcbros

    @5 – I’m sure some people (mothers?) might have been worried about the 3D effect giving their kids headaches or eye strains. So now they can play 3DS games without that issue, plus it’s cheaper. I can see parents buying this for their kids this holiday season.

    But remember, it’s just another *option*. They obviously don’t want to reduce the price if they don’t have to. Sony reduced their PS3 to $200… but at the cost of a 12GB HDD. Obviously Sony was not willing to JUST reduce the price ;)

    #5 1 year ago
  6. monkees19

    I started reading the article then saw Pachter’s name and I needed to go no further. Why do people keep asking him stuff? HE’S ALWAYS WRONG.

    Article related, my 5 year old son has his own 3DS and he uses it just fine. But he’s not over-exposed to it as he loves to go back and play regular DS games all the time.

    #6 1 year ago

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