Several analysts weigh in on Nintendo's surprise decision to dramatically lower the 3DS price...

As the explosive news of the major price cut to the 3DS continues to reverberate around the internet, seasoned analysts have been swift in offering their thoughts on Nintendo's aggressive decision.

EEDAR's Jesse Divnich told Gamespot that people should wait out the long game to see where exactly this would put the 3DS, citing the upcoming holiday season as critical, though claimed ultimately it should be beneficial to the health of the platform.

"The price cut was drastic, there's no doubt about that. I think it was certainly necessary for Nintendo to go this route. Definitely, I think right now that the market is very concerned about the long-term potential of the 3DS... We really need to give Nintendo the benefit of the doubt. This is a company that has historically and consistently outperformed expectations. We tend to forget that over 40 percent of their revenue comes in this short holiday window.

"This is probably by far one of the most critical holiday seasons for Nintendo in the company's history. For the last 20 years, they have dominated and owned the portable market. They're still doing that today, but the question is, 'Is that portable category as big as it was five years ago, or are we starting to see a transition into mobile and tablet gaming?'

"What this move does is show that Nintendo is willing to give up a little bit of profitability to ensure that the console's installed base grows to support profitability for third-party publishers. It certainly sends a positive message. There's no doubt there are red flags that are raised about the long-term health of the 3DS, but I think unanimously publishers agree that this is a step in the right direction for the 3DS platform... This move is an action to show developers that Nintendo is going to try to build that installed base for the holiday season. More so than anything else, just to make sure that third-party publishers continue to dedicate proper development and marketing to potential 3DS products."

Mike Hickey of Janco joined Divnich in telling IGN that pressure from retailers would have been a key factor in the decision to lower the price so much so fast.

"Retail is definitely a factor in this decision. 3DS has just not been moving in the channel, not moving at all. I think this price drop is appropriate. Normally you'd expect them to wait until the fall, but, frankly why wait? It has been overpriced and hasn't been selling. It's a cool device, and it's under a lot of pressure from smartphones, but I think the new price might give it some traction."

The thing that struck David Cole of DFC Intelligence was the aggressiveness of the move. He told Industry Gamers that the cut would heat up the battle between 3DS and Sony's upcoming Vita handheld, placing the focus on those two gaming systems, rather than the wider smartphone scene that most of his contemporaries cite.

"I just looked at their revised financial forecasts and they are ready to take a hit. They are really being aggressive. It is very unlike Nintendo to be willing to take such a loss. I think what it says is that they really feel the heat from the Sony Vita. I see it as a move to protect their market share and position in handhelds. I would not call it desperation but more a very aggressive defensive action by the market leader to hold on to market position. Sony I think can possibly play this to their advantage, although the price difference is tough. Sony is going up against a very aggressive leader in Nintendo. I think we can say that competition in the portable space should really heat up. That could be good for consumers that can take advantage of these deals."

In the UK, it is not clear exactly how much the 3DS will retail for after August 12th due to the tradition of retailers setting their own prices. Piers Harding-Rolls speculated to Eurogamer that the new RRP of the system would fall somewhere between �150-�155. However, like has been the case so far, he feels actual prices will be even lower than that.

"This aggressive price cut is a calculated risk. Nintendo needs to build some 3DS momentum in the run up to the holiday quarter, when much of its best content will hit the platform. The 3DS was expected to see the company through the [home] console transition from Wii to Wii U, but the platform has been partly let down by a lack of content. If there is no momentum in the platform, third parties are more likely to delay or even shelve game releases, which will only exacerbate the situation. (This is a) decisive but uncharacteristically early move, (and it was) both reactive and proactive. A cut of this magnitude and so shortly after launch is unheard of from Nintendo in recent times. The last time Nintendo was prompted to cut its price quickly after launch was with the N64 in 1997, and I think this indicates that senior management are acutely aware of some of the challenges that lay ahead for the company as it tries to drive adoption of its newest platforms in a changing world of games content consumption."

The initial response from retailers themselves seems to be wholly positive. Chiming in, Tim Ellis of HMV was incredibly buoyant about the upcoming holiday season, saying that the new price would be an all-important accessible figure to parents looking to buy for their kids.

"This cut is clearly great news which we welcome and will look to pass on. It's a significant price drop that will give the format a much needed boost. It's good timing too, especially with the holidays just under way, and the new price point will make it a much more justifiable purchase for parents, which I think is an important factor."

We'll have all the developments on the 3DS situation as they break.