Analysts keen on date, price of 3DS

Last night in Japan, Nintendo offered a handful of launch details for its latest new handheld, the 3DS. As previously indicated, Japanese audiences will be offered first crack at the system on February 26 for ¥25,000 ($299). That date falls well after the time frame projected by the Japanese media, but the system's March rollout in the West is right in line with expectations.

Also right in line with expectations, analysts have quickly issued their reactions to Nintendo's announcement. For Electronic Entertainment Design and Research analyst Jesse Divnich, Nintendo's decision to release the 3DS in Japan in 2011 bodes well for game quality.

"We believe that a 2010 holiday launch would severely impact both the quantity and quality of titles that could be made available by November 2010," Divnich wrote.

"EEDAR believes there is both a short-term benefit (by not placing a third new device into the holiday lineup for consumers) and a long-term benefit (by allowing publishers and developers additional time to create compelling content) in the selected launch timing for the 3DS platform," he continued. "Nintendo's decision to launch in North America and Europe in 2011 has little to do with manufacturing limitations and everything to do with Nintendo's decision to ensure a strong third-party launch lineup."

Divnich also reacted positively to the 3DS's announced Japanese price point, even if it is well above the ¥15,000 and $150 launch cost of the original Nintendo DS in 2004. According to the analyst, the price point isn't likely to discourage potential purchasers, due in large part to the functionality that money buys.

"The higher price point allows Nintendo to incorporate new features such as 3D movies, camera, and game support, as well as incorporating a more robust online network to aid Nintendo in evolving their product from a single-use, games-only platform to supporting the plethora of media and entertainment options that consumers have become accustomed to using on their handheld devices such as the PSP, smart phones, and tablet computers," he said.

Lazard Capital Markets' Colin Sebastian agrees that the 3DS's functionality will help Nintendo better compete against increasingly prevalent mobile options, such as Apple's iPhone or Google's Android devices. However, he doubts that the steps forward will be enough to stem off the increased competition.

"More important for Nintendo, as smart phones and connected tablets gain share in the casual and handheld game market, the 3DS will offer consumers a unique and differentiated experience combined with Nintendo’s historically strong first-party software lineup (e.g., Mario, Zelda, Pokemon, etc.)," Sebastian wrote. "Nonetheless, we continue to believe that the iPhone and Android devices will continue to gain market share in handheld gaming."