@apujanata, I'm not sure the price drop confirms that the 3DS is a failure. I think Nintendo overestimated the value of the system especially in the current economic state. They may have also been a bit cocky after seeing the success of the DS and tried to be greedier than usual.
The whole situation reminds me alot of what Sony was facing with the launch of the very expensive PS3 that tried to follow in the footsteps of the super successful PS2. Eventually, the PS3 shaped up OK even if it didn't end up being as successful as the PS2.
What I see hurting the 3DS the most is the lack of high quality original games. Alot of the high profile games I've seen for the 3DS so far are remakes which I don't think will move systems. The other problem is that the rough start may mean 3rd parties are more reluctant to actively support the system resulting in even less original games.
Nintendo has just announced that the price on the 3DS will drop to $169.99 stateside on August 12. A similar cut in Japan (effective August 11) will take the system from 25,000 Yen (around $317) to 15,000 Yen ($190). We don't yet have a specific price for a corresponding European cut, but Nintendo tells Eurogamer the price will drop by "about a third."
Tomita Technologies has filed a patent suit against Nintendo, alleging that the 3DS's stereoscopic display infringes upon Tomita's patent for "technology relating to displaying stereoscopic images on-screen for viewing with the naked eye, i.e., without utilizing glasses or other devices.," filed in 2003 and granted in 2008.
One item that came to my mind when I read this artical that is bust be supply related but apperently it is not as 3DS are very abundent both new and used.
This launch somewhat reminds me of the PS3 launch where people expected a frenzy for the new system but the market just isn't as hungry for the new system yet.
After only a month on the market the 3DS has lost it's spot in the Japan handheld market to the PSP. The 3DS fell behind the PSP by a margin of about 15,000 units.
What's more, according to a report from Japanese news site Inside Games, only around 836,000 3DS units have been sold in Japan so far -- a little over half of the initial Japanese shipment.
The PSP’s successor, currently codenamed the Next Generation Portable (NGP), is already on its way to repeat history as the Nintendo 3DS is slated for a March 27th North American release—way ahead of the NGP’s expected 2011 holiday season debut
Nintendo UK Head of Communications Robert Saunders recently responded to a post on MaxConsole, which corralled a number of Twitter users complaining that their time with the 3DS was causing headaches and dizziness. Saunders explained, "When viewing any kind of 3D images (TV, movies etc.), some people might experience minor discomfort." He added, "The effects are short term and have no lasting effect, in fact most players can continue after taking a short break."
Nintendo handheld tops PlayStation 3 as online retailer's best prerelease performer with 20 percent more reservations and a week left before launch.
While the March 25 launch of the 3DS in the UK is likely to draw a significant number of eager gamers camping out overnight to get their hands on the new handheld, one retailer has found that more customers than ever before are willing to order online and wait for the mail carrier to make the rounds.
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I still love my Virtual Boy. its battery life also sucked.