Nintendo has had to cut the price on the 3DS as a way to revitalize its portable gaming business. However, M2 Research analyst Billy Pidgeon says that selling hardware is not enough for the company.

“Nintendo needs to change its business fundamentally … Selling in hardware is important, but Nintendo must increase attach rates and third party opportunity dramatically,” said Pidgeon. “Lower 3DS hardware prices only address part of the problem. It’s more important to sell more software as packaged goods and paid digital downloads to each customer who buys a hardware unit.”

“I would like to see Nintendo cut the retail price of packaged software to a range of $20 to $25 for the 3DS. DS software should be $20 or less, adds Pidgeon.

Source: IndustryGamers {link no longer active}