While gaming fans are already aware of the strengths of the Nintendo DS platform and its stellar library of exclusive franchises, Iwata stressed the importance of communicating these selling points to the broader game-buying audience.
"If we can't make clear why customers pay a lot of money to play games on Nintendo hardware and Nintendo software and differentiate ourselves from games on the mobile phone or iPhone, then our future is dark," he said.
The expanded-functionality Nintendo DSi, released last year, is still selling well, and the soon-to-be-released Nintendo DS LL is aimed at expanding the system's reach to older users.
However, research firm DFC Intelligence recently stated that they feel the growth of dedicated portable game platforms like Sony's PSP and Nintendo's DS has peaked, and that Apple's iPhone will drive the portable gaming segment over the next five years. They estimate that the iPhone game market will rise from its current $46 million to $2.8 billion by 2014, while they expect revenue from dedicated handheld software platforms to shrink 27 percent to $6.3 billion in the same time frame.
Iwata has recently expressed interest in a handheld digital distribution model akin to Amazon's Kindle e-Reader, which gives users free wireless content downloads for the device within the United States through an agreement with wireless carrier Sprint. This means that, unlike the iPhone, there is no ongoing fee for users to pay.
As usual, Iwata played his cards close to his chest regarding the future of Nintendo's portable strategy. "My job is to find the potential in something that others can not see, to secretly pour our resources into them and turn them into hits before anyone else catches on," he said.
Obviously, as they've already added two screens and two digital cameras to the handheld, the next logical step is to create a phone with two phones built in.
I know most analysts or deluded or idiots, but this on especially is if he thinks the iPhone/iPod Touch games market will grow from just $48 million to $2.8 billion in 5 years. No one thinks of it as a serious platform. Most of the crap sold in the iTunes App store are simple little games that are played a few times and forgotten (a study even showed that most Apps are used and then deleted in less than a month). Add in that developers make very little money from them (first by the low prices they have to use, and then by the fact that Apple takes a very large chunk from every sale) and developers will never put the resources into a iPhone game as they would for a DS/PSP game. iPhone games are a novelty basically, it will never be a serious threat to Nintendo.
A few days ago, I realized there is one major advantage to the DS over the iPhone-startup time. My iPhone takes about a minute to become usable, while my DS takes a few seconds-a major differentiator on planes.
Obviously, as they've already added two screens and two digital cameras to the handheld, the next logical step is to create a phone with two phones built in.
While I don't think iPhone/iPod will ever be a direct threat to handhelds without destroying the very space they exist in. They are still smart phones and music players first. Pushing it towards gaming by adding buttons they removed so it can be a better phone/player would break it's form. They had removed the buttons for a very good reason.
iPhone games are no more than $10 while all PSP and DS games are $30 or up. For casual gamers they don't care about quality games. I'm guessing majority of iphone gamers are casual gamers and that will take away from DS casual brain age people.
i really do think iphone is a threat to DS and PSP.Careful It gets messy sometimes. Civilisation Revolution is the SAME GAME on both systems, iPod version is 1/10th the price.
iPhone games are no more than $10 while all PSP and DS games are $30 or up. For casual gamers they don't care about quality games. I'm guessing majority of iphone gamers are casual gamers and that will take away from DS casual brain age people. It can potentially a race to the bottom as people don't want to buy a $30 ds game vs. a $1 iphone game. I worry the iPhone is going to bring about the 2nd major videogame crash.
