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Nintendo Sees Substantial Profits Loss Thanks To iPhone, App Store

Submitted by Edward Kirk on October 30, 2009 - 3:49pm.
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Japanese game maker Nintendo is experiencing a massive cut in profits from portable game sales thanks in part to competition from the iPhone and iPod touch, and their massive inventory of game downloads via the App Store. Profits fell from 133 billion yen per year to 64 billion yen, or $709 million, last quarter.

"Nintendo's portable game machine, the DS, also faces increasing competition from Apple Inc's iPhone, which has become a popular platform for handheld games," Reuters noted.

To fight the decline in interest, they will be launching the Nintendo DSi LL, with an updated form factor and 93% more screen area for $222.

[via Apple Insider]

The problem:

Submitted by kellygeorge on October 30, 2009 - 4:43pm.
The problem with the DSi LL is that it is still just a nintendo DS. Really, the DS was introduced in 2004, and has seen minor tweaks since then, none of which have been very exciting. I've never seen the selling point of the DS (unless I want to pet an electronic puppy with a stylus, which I don't). Nintendo is missing a big opportunity to draw some real attention at a time when game and app development is booming. It is time (or past time) to move on and look into something fresh and new, and maybe something that can be used to download and play mini games. At least that way App Store developers could easily port their apps to the nintendo system, they way they are with Android and other portable OS's. I think that nintendo has hurt their reputation quite a bit in the 'gaming' world, due to the lack of quality games for the wii and other products, but they have moved on to a new demographic. The issue they face now is that those customers who like easy, pick-up-and-play games are more than happy to play them on a cell phone, rather than carry an extra device.

On a separate note, what happened with nintendo at E3? Microsoft announces Project Natal, Sony announces some motion stuff and the psp go, and nintendo announces a few games and the vitality sensor. Really? A vitality sensor? What for?

Submitted by Michael Johnston on October 30, 2009 - 6:48pm.
I always enjoyed petting doggies on the DS but that was what, 5 years ago?