AUG. 20, 2015 • Nintendo of America has reduced the MSRP of its 2DS handheld system from $129 to $99. Despite the lower Nintendo 2DS price, the portable is still being bundled with Mario Kart 7. This is the first price break since the Nintendo 2DS was launched two years ago. The system is not marketed in Japan and was intended as an entry-level entree into the Nintendo family of games for overseas markets. The 2DS can play all games in the larger 3DS line, but without the 3D display option or the folding clamshell case.

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Impact: We wish we could say this price break was due to production cost efficiencies being extended to consumers, but fear this is not the case. For the fiscal first quarter ending June 30, 500,000 Nintendo 2DS units were sold worldwide. For the same period in 2014, 2.1 million 2DS systems were purchased globally. This decline is at the same time the various versions of Nintendo 3DS models saw an increase in sales from 6.1 million units to 9.6 million units for the same quarter year over year. The release of the New 3DS models during the last year are probably to blame for the misfortunes of the 2DS. Retailers clearing stock of older 3DS XLs at street prices in the $175 range, with the 3DS available around $150, were not that far different in cost from the $129 2DS. The value proposition was stacked against the entry-level system and an adjustment in price had to be made to rekindle interest. Sadly, the move may be eight months too late. Resetting the 2DS at $99 back when the New 3DS XL was being unveiled could have shored up demand before consumers lost interest. Although the 2DS has never been a major seller, it was 26% of all 3DS family units sold during the first fiscal year quarter of 2014. To see that share fall to 5% for the same quarter in 2015 is unfortunate.