You're crazy. Until mobile phones have tactile controls they will never replace true hand helds. The 3DS is selling better than the DS was at this stage of it's life.
Phones are fine for playing Farmville and Bejewelled type games, but that's about it. I play the shit out of Puzzles and Dragons during down time but I can't ever see myself playing an RPG or anything more complicated with a touchscreen.
Good for you? Games make up for the majority of revenue on the ios app store and the Google Play store - phones and tablets are obviously good enough for a huge segment of the market.
So, let's explain why Nintendo is fucked.
1 - Their share price has dropped to Gamecube era prices -
http://uk.finance.yahoo.com/echarts?...rce=undefined;.
2 - The 3ds is selling poorly. Nintendo predicted to sell 17.5 million 3ds units this financial year. They had to reduce that estimate to 15 million because of poor sales over Xmas, and it looks like they're going to miss that estimate, too.
The 3ds also performed incredibly poorly in the US this January. Last year, it sold 170k units. This year, it sold approximately
150k~ units. That's a massive drop. To make matters worse, January 2012 was a 4 week month while January 2013 was a 5 week month, which makes the sales figures look better than they are. Accounting for the 5 week month, we're looking at a 30%~ish drop in sales in 2013 compared to 2012.
The only place the 3ds is selling well is Japan. And maybe France.
3 - Consumers don't care about the Wii U. Nintendo originally predicted selling 5.5 million Wii Us this FY - they revised that estimate to 4 million, and they're likely to miss that figure, too. It's overpriced, underpowered, lacking games, and the tablet gimmick hasn't gone over well at all. We already have so many touch devices in our life - why would we care about the Wii U tablet? Unlike their previous consoles, Nintendo is selling the Wii U at a loss, too, which isn't helping things. It also gives them little room to maneuver on price.
What's interesting is that the Wii U drought was, in fact, planned out by Nintendo in advance. Quoting Iwata -
Nintendo tends to release too many titles at the launch of a hardware system and as a result suffers a drop in new games for quite some time after launch, and for the Wii U launch, we are being very careful not to let it happen. Fortunately, third-party publishers overseas are launching many titles for us this time, and we were able to push back the release of some of the titles that we had originally intended to release as launch titles until next year.
They were delusional if they thought ports of old ps3/360 games would be fine for launch. Supposedly the Wii U has a software tie ratio of 2.0 - 2.1.. Absolutely terrible.
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Nintendo is a victim of poor management and poor planning. Iwata and the rest of Nintendo upper management are clearly out of touch with the current state of the market market and the current consumer. The 3ds is trending downwards year on year and the Wii U has gotten off to a disastrously poor start. They need to make big changes ASAP if they want to get out of this mess.
P.S. Again, the Wii U's biggest problem is... that it came out too close to the 3DS. Nintendo's strength, and now their weakness, is that they largely have the same teams working on console and handheld games. Except those teams were busy with 3DS games until late 2011, and now people are confused when E3 2012/Holiday 2012/possibly even Holiday 2013 are barren. Games take time, and Nintendo had too many teams working on 3DS games long past the point where they should have switched to Wii U development.
I want to know what Nintendo did with their ds/Wii profits. Why didn't they invest some of their profits into making tons of new games for the Wii U/3ds launches?
I do wonder if anyone else is feeling Nintendo 'fatigue', too. Their games are well designed, the controls are tight and they're fun to play. But fuck, I'm so sick of exploring Hyrule and the Mushroom Kingdom. The 'NSMB' aesthetic feels so tired already, despite it being a relatively new 'franchise'. I wish Nintendo would start working on some new IPs.