3DS price cut "only addresses part of the problem"

Nintendo may have taken the first step toward reversing the fortunes of its 3DS by cutting the price, but further action is needed.

That’s according to analyst Billy Pidgeon of M2 Research, who told IndustryGamers that a change to its boxed software pricing strategy is also needed if the console is to succeed.

"Nintendo needs to change its business fundamentally,” he believes. WithWii and DS, Nintendo built large installed bases but failed toenergise those bases.

Selling in hardware is important, but Nintendomust increase attach rates and third party opportunity dramatically.Lower 3DS hardware prices only address part of the problem. It’s moreimportant to sell more software as packaged goods and paid digitaldownloads to each customer who buys a hardware unit.

I would like tosee Nintendo cut the retail price of packaged software to a range of$20 to $25 for the 3DS. DS software should be $20 or less."

Nintendo president Satoru Iwata has previously hinted that he is encouraging third party publishers to lower the price of their 3DS titles.