Nintendo cuts Wii U price, plans lower-priced device for holidays

Nintendo plans to offer a new handheld gaming device and a US$50 discount on its most expensive Wii U console in North America and Europe, to compete with rivals Microsoft and Sony as they prepare to release new hardware.

Nintendo said on Wednesday it will start selling the product, called 2DS, on October 12, priced at US$129.99, which is US$40 and US$70 less than its two 3DS devices. The new gaming device is a lower-resolution version of the popular 3DS and will play DS games and 3DS games in 2D graphics.

The new product, which will come in red and blue and will have two screens and a camera, is about as big as a 3DS laid out flat, but without the foldable clamshell design of the 3DS.

Known for games with characters like Mario and Zelda, Nintendo has faced stiff competition from inexpensive or free mobile games on tablets and smartphones. Games on iOS and Android devices are eating into the market share of consoles and handheld devices.

With the 2DS, Nintendo hopes to attract new players who have not been able to afford costlier versions of its 3DS, priced at US$169.99 and US$199.99, Reggie Fils-Aime, president of Nintendo of America said in an interview earlier this week.

Some industry analysts have criticised Nintendo for limiting its games for use on its own systems and not taking advantage of the rapid growth of games on iOS and Android mobile devices. Nintendo executives have said letting popular game characters like Mario1 roam on mobile devices would impair the company’s hardware business in the long term.