Nintendo profits freefall as iPhone cuts into portable game sales
Japanese game maker Nintendo's profits were cut in half, as sales of its portable Nintendo DS system continue to feel the impact of the iPhone and iPod touch.
Nintendo's profits fell from 133 billion yen a year prior to 64 billion yen , or $709 million, last quarter. Those losses, in part, were attributed to increased competition, including Apple's iPhone.
"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 combat declining interest in its Nintendo DS platform, the company announced it intends to launch a new form factor for the hardware in Japan in November. The Nintendo DSi LL will feature 93 percent larger 4.2-inch dual screens and will carry a $222 price tag.
As Apple continues to gain ground in the portable gaming space, the Wall Street Journal also suggested that the Cupertino, Calif., company could enter the console business and compete with the Nintendo Wii, Microsoft Xbox 360 and Sony Playstation 3. While that rumor has persisted for years, it has yet to prove accurate.
For years now, Apple has pitched its iPod touch as a portable gaming machine, dubbing it "The funnest iPod ever." The latest upgrade to the hardware includes the ability to run Open GL ES 2.0, with up to 50 percent faster performance.
When the upgraded iPod touch was unveiled in September, Apple highlighted a number of high-profile upcoming game releases from franchises that were established on competitors' hardware, including Assassin's Creed and Madden NFL. While many of the early successful iPhone and iPod touch games came from small-time developers, big-name content creators like Electronic Arts, id Software and Konami began flocking to the platform this year.
Apple also boasted in September that, at that moment, the iPhone OS had 21,179 game and entertainment titles available, compared to 3,680 for the Nintendo DS and 607 for the Sony PSP. One of the strengths of the iPhone and iPod touch is the number of budget-priced titles available for the platform. Comparatively, most games for the Nintendo DS and Sony PSP cost between $25 and $40.
Nintendo's profits fell from 133 billion yen a year prior to 64 billion yen , or $709 million, last quarter. Those losses, in part, were attributed to increased competition, including Apple's iPhone.
"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 combat declining interest in its Nintendo DS platform, the company announced it intends to launch a new form factor for the hardware in Japan in November. The Nintendo DSi LL will feature 93 percent larger 4.2-inch dual screens and will carry a $222 price tag.
As Apple continues to gain ground in the portable gaming space, the Wall Street Journal also suggested that the Cupertino, Calif., company could enter the console business and compete with the Nintendo Wii, Microsoft Xbox 360 and Sony Playstation 3. While that rumor has persisted for years, it has yet to prove accurate.
For years now, Apple has pitched its iPod touch as a portable gaming machine, dubbing it "The funnest iPod ever." The latest upgrade to the hardware includes the ability to run Open GL ES 2.0, with up to 50 percent faster performance.
When the upgraded iPod touch was unveiled in September, Apple highlighted a number of high-profile upcoming game releases from franchises that were established on competitors' hardware, including Assassin's Creed and Madden NFL. While many of the early successful iPhone and iPod touch games came from small-time developers, big-name content creators like Electronic Arts, id Software and Konami began flocking to the platform this year.
Apple also boasted in September that, at that moment, the iPhone OS had 21,179 game and entertainment titles available, compared to 3,680 for the Nintendo DS and 607 for the Sony PSP. One of the strengths of the iPhone and iPod touch is the number of budget-priced titles available for the platform. Comparatively, most games for the Nintendo DS and Sony PSP cost between $25 and $40.
Comments
http://www.neowin.net/news/gamers/09...si-ll-revealed
Hey Nintendo, 2002 called, and they wan't their handheld back.
What does seem likely is that we are 1) in a recession 2) somewhat stale hardware 3) everybody and their brother already has a Ds. Sure some impact from the touch, but I have yet to any kid dropping the Ds for the games on the Touch.
I've even asked my 9-yr old about the Touch, and he said it was too hard to control compared his Ds or PSP.
Thoughts?
it just seems like a good way to get EA and everyone else happily developing games for mac...
To me it seems unlikely that iPhone or iPod Touch had that much of a significant impact on Nintendo's portable sales. Another example of Apple cheer-leading by AI.
What does seem likely is that we are 1) in a recession 2) somewhat stale hardware 3) everybody and their brother already has a Ds. Sure some impact from the touch, but I have yet to any kid dropping the Ds for the games on the Touch.
I've even asked my 9-yr old about the Touch, and he said it was too hard to control compared his Ds or PSP.
Thoughts?
I agree with ou there.
I've even asked my 9-yr old about the Touch, and he said it was too hard to control compared his Ds or PSP.
I?ve seen young kids be able to use my iPhone and learn to navigate the pages to find games and go back using the Home Screen astonishing quick, but the lack of a D-Pad can make it less than ideal for the way games have been designed for 30 years now. Now that v3.0 has allowed for 30-pin connector access I expected to see some D-pads on the market for the holidays. Actually, I?m surprised I?m not seeing more accessories on the market for the Touch and iPhone.
Another example of Apple cheer-leading by AI.....Thoughts?
Yeah. Your point being?
Actually, I?m surprised I?m not seeing more accessories on the market for the Touch and iPhone.
Wasn't that long ago Apple opened it up, my suspicions are that the next few months will see a deluge of accessories.
Actually, I?m surprised I?m not seeing more accessories on the market for the Touch and iPhone.
That is an interesting observation. Why do you suppose?
Another example of Apple cheer-leading by AI.
Another example of an Apple fan site . . . being an Apple fan site.
iPhone cuts into portable game sales
If by "cheerleading" you mean "reality", then you're absolutely right.
And we're talking about the DS here. It was interesting about 4 years ago. Now it's just sad.
Wasn't that long ago Apple opened it up, my suspicions are that the next few months will see a deluge of accessories.
The iPhone OS v3.0 was released at the end of JUne, but the announcement of the iPhone OS v3.0 30-pin access for 3rd-parties and SDK 3.0 Beta 1 were released in Mid-March. That is full 7.5 Months that companies can ready their wares. At least make an announcement.
What I find most odd is that prior to the iPhone v3.0 announcement officially allowing the 30-pin access we had two companies who worked up demos of D-pads for Apple?s devices. What happened to them?
That is an interesting observation. Why do you suppose?
I have no idea. Maybe there are issues with it. TomTom is no longer able to get the GPS working with the Touch or 1st Gen. iPhone.
IT's a small risk, high reward scenario. GAmes are sold on the app store just like with the iPHone/Touch. ATV is already in stores. Probably has enough power to do iPHOne games or if not upgrade it a bit. That shouldn't be difficult to do and keep the same pricepoint given it is still $230 after a few years.
Only hurdle is what do you use for a controller?
And we're talking about the DS here. It was interesting about 4 years ago. Now it's just sad.
The great thing about Nintendo is that they can falter, misstep or simply fall out of favor but come back strong years later. I do not doubt that Nintendo will just bide their time until the paradigm shift allows them to make a comeback like they?ve done so many times before.
Makes no sense not to enter the console market with the ATV.
IT's a small risk, high reward scenario. GAmes are sold on the app store just like with the iPHone/Touch. ATV is already in stores. Probably has enough power to do iPHOne games or if not upgrade it a bit. That shouldn't be difficult to do and keep the same pricepoint given it is still $230 after a few years.
Only hurdle is what do you use for a controller?
your iphone over wifi. ick. the iphone wifi remote app for ATV works quite nicely so i'm sure it's possible and has been considered.
I'm sure apple could provide a wifi controller for a mere $19.99, $29.99 or $39.99... the usual add-on price.
the ipod touch / iphone and ds have such an incredibly different price point and feature set that it's hard to argue that they compete directly.
the iphone has no physical buttons, making it incapable of anything beyond 10-second gaming.
In Japan I don't think the Touch and iPHOne are that big.
IN the US the DS is still selling quite well. Still #1 selling gaming console.
I think Nintendo jumped the shark with the Dsi though. It wasn't a full-fledged sequel. It was just a stop-gap product that isn't going to be fully supported this late in the lifecycle.
I do think making a bigger screened DS is a good move. When I had one I never took it out of the house. And thought the screen was too tiny for half the games. AT this point though it seems like another stop-gap product.
Something you buy now and a year later Nintendo announces the DS2.
Sony PSP -> Plane ride
Nintendo DS -> Bus ride
iPhone/iPod touch -> Toilet break
Hey Nintendo, 2002 called, and they wan't their handheld back.
Wake me up when anything on the App Store is as good as New Super Mario Bros, Mario Kart DS or Advance Wars: Days of Ruin.