Nintendo's surprise announcement of a new 3D handheld was an effort to stem leaks from the Japanese press, according to Billy Pigeon, analyst at M2 Research.

The company said last week that it would unveil the 3DS console at E3 in June – unfortunately it came at the same time the company was launching the super-sized DSi XL in the US and the UK.

"Apparently, the Japanese press was all over it and talked with suppliers there and Nintendo just wanted to get out ahead by breaking the news to prevent a leak," Pigeon, told CNBC.

The move was also evidence that Nintendo's Japanese division makes all the big corporate decisions, said Pigeon, at the expense of its marketing offices in North America and Europe.

"The XL is old news, however, in Japan – and Nintendo is a very Japan-centric organisation. This is just the corporate parent in Japan maybe not acting in the best interest of Nintendo of America."

The 3DS will offer 3D gaming without the need for special glasses, with speculation that the hardware will use parallax barrier technology.

Pigeon suggested that now news of the hardware has been made official, Nintendo is in a better position to cut the price of other DS consoles on the market, without giving the impression it has reduced RRP due to competition.

"It gives them a reason to bring down prices on the DS from a position of strength," he said

http://www.gamesindustry.biz/article...se-press-leaks