Nintendo to launch 3DS next year

Nintendo said today it would launch a 3D-capable version of its DS handheld game console in Japan on February 26th and in Europe…

Nintendo said today it would launch a 3D-capable version of its DS handheld game console in Japan on February 26th and in Europe and the United States in March, missing the crucial year-end shopping season.

Shares of Nintendo dropped on the announcement and ended trading down 3.7 per cent at 23,010 yen.

The new DS, which can be used to play 3D games and watch films in 3D without special glasses, will cost 25,000 yen (€221) in Japan, Nintendo president Satoru Iwata said at a launch event.

That compares with retail prices of about 12,000-16,000 yen for existing DS models in Japan.

Nintendo did not reveal the price or exact launch date for the US, by far the biggest market for the game machine maker. But it may lose customers to rivals Sony and Microsoft, whose motion-gaming peripherals will be on the market in time for the year-end.

The new 3DS created buzz when it was revealed at the E3 game show in the United States earlier this year, and Nintendo needs a new hit product as sales of its ageing DS models and Wii home consoles sag.

"The 3DS was very well received at E3, but we are not complacent about sales," Mr Iwata said. "One problem is that you can't understand it without trying it out."

The company has cut existing DS model prices to bolster sales, sacrificing profits in the April-June quarter. Many analysts believe Nintendo will have trouble hitting its forecast profit of 320 billion yen for the year to March 2011, especially given the strength of the yen.

Reuters