updated 04:40 pm EDT, Thu April 26, 2012
Hopes to bring it back to profitability this year
With its latest financial report (PDF), Nintendo has admitted that it is selling its 3DS portable gaming console at a financial loss. This is only since it dropped its price in late July to boost sales, from the original $250 to just $170. The gaming giant did go on to say it plans to stop selling it below cost by the middle of the current fiscal year, which ends on March 31, 2013.
How it will do this wasn't revealed, though it's not likely to raise prices back up. Instead, it should reduce its costs of producing the console, either from the volume it has produced or any new efficiencies in its manufacture. The turnaround to profiting from the console is expected to happen sometime in August.
It's not uncommon that manufacturers lose money on consoles, instead making profits on accessories and games, as was the case with Sony's PS3 home console. [via Joystiq]