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“As smartphones and connected tablets gain share in the casual and handheld game market, the 3DS will offer consumers a unique and differentiated experience combined with Nintendo’s historically strong first-party software lineup (e.g., Mario, Zelda, Pokemon, etc.),” says Colin Sebastian of Lazard Capital Markets. Analysts agree, saying the system could let Nintendo once again stand out from the crowd.
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No portable system has true 3D capabilities, however - and critical reaction to the 3DS at E3, the video game industry’s annual trade show, was extremely favorable. While the company has not formally announced the PSP2’s existence, many developers have acknowledged they are in the process of developing games for the system. Meanwhile, Sony is gearing up to launch a new PlayStation Portable gaming system - dubbed the PSP2.
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And phones equipped with the Android operating system are growing just as fast.
Apple devices, such as the iPhone and iPad, have captured a significant portion of the market. The 3DS is a gamble for Nintendo, which after years of being the predominant player in the handheld gaming space, is now facing its most serious competitor. (Ongoing soft demand for the current DS handheld units was also blamed.) So, it seems, did Nintendo, which lowered its hardware expectations for its fiscal year from 30 million units to 23.5 million. The company would be ecstatic if the 3DS had that same reaction.Īnalysts expected the Japanese launch of the 3DS would occur in time for this holiday season. Retailers could not keep the systems in stock, which only fueled consumer’s interest. Part of the Wii’s success was its perception as a must-have item for so long. The pricing could be a deliberate move, though, to keep demand under control, as Nintendo may currently be supply constrained. 3D, though, is a new technology and still carries a premium - and glasses-free technology is a step beyond what even television manufacturers are offering today. That’s something of a departure for Nintendo, which has historically worked hard to keep prices in a range where the mass market will have immediate interest. In Japan, the 3DS will cost 25,000 yen (roughly $299). pricing hasn’t been set, enthusiasts should brace for a hit.
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