Nintendo Opens a Crucial Chapter for 3DS Game Device

Nintendo Co.’s decision to slash prices this week on its new 3-D hand-held game device, follows a miscalculation on the machine’s appeal. It also sends a clear message to skittish game developers that the Japanese company is willing to stomach losses on 3DS sales — a strategy usually avoided by Nintendo — to try to widen the device’s appeal.

The success of the price cuts — as deep as 40 percent — will be vital for the company’s prosperity.

“If this price cut doesn’t work, there’s not much more they can do,” said Macquarie Securities analyst David Gibson.

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