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Analysts say 3DS has turned the corner, but won't beat DS overall sales

"It's very successful, but ran into a headwind given its relatively high price - which I incorrectly thought was the right price - and lack of third party software support. Now that we are seeing more first party titles at a lower price point, sales have increased. It's definitely turned the corner. I was surprised that it sold so few at the $249 price point, and its sales to date are exactly what I originally forecasted at that price." - Wedbush analyst Michael Pachter
"With the strong rebound in 3DS sales, I think Nintendo is clear of the woods for now.vvGoing forward, however, we will closely be paying attention to software attach rates. Selling hardware is great, but it is only the first step. The health of any hardware is directly correlated to the amount of software consumers buy.vvThe 3DS's slow start surprised us all, but once they announced the steep price cut we had little concerns that they would rebound. At such a great price, backed by strong first-party content, it shouldn't be of any surprise they were able to turn the corner." - EEDAR
"2012 will be crucial for the platform, as its sales momentum will decide how third-party investment in content development will be prioritised. We expect the 3DS to continue selling, but Nintendo faces an increasingly competitive landscape and the hurdle of convincing third-parties to invest in the platform." - Screen Digest's Piers Harding-Rolls

These analysts went on to say that it would be very tough, if not impossible for the 3DS to outsell the DS.

"At the high end, we have renewed competition from Sony with PS Vita, so they should nibble away at the hard core, leaving Nintendo an addressable market for 3DS that is around 60 per cent as big as the addressable market for DS." - Wedbush analyst Michael Pachter
Full interview here

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