One of the reasons why Nintendo has been around for a long time, despite being exclusively a game company (compared to Sony and Microsoft, which had income streams in other sectors), is the fact that they rarely launch hardware that they won’t make a profit on, even if they have a healthy library of first party titles able to recoup any losses.
One of the few exceptions to Nintendo’s “sell at a profit” business model is the 3DS, which had a very disappointing six months in terms of sales, forcing the big N to introduce a major price cut that resulted in every single handheld being sold at a loss.
However, it was only temporary as Nintendo has already managed to sell 1.86 million 3DSes and already incurred $224 million in losses for the price cut, which means Nintendo has already pushed enough units to get over the hump and are now turning a profit on every 3DS unit sold. Additionally, the sales on the 3DS have already increased by 162% compared to the previous year.
This is a good news for Nintendo fans, especially fans who are afraid that the massive success of the iOS gaming market will slowly but surely encroach on Nintendo and the other game companies’ market share and put everyone else out of business. With Nintendo’s improving sales, you can rest assured that the Big N will be around for quite some time.