(NOTE: Originally posted 10/2011 for Press2Reset and MyIGN Blogs)
Many times this year I’ve spoken unfavorably of Nintendo. Back in February I talked about how 2011 would be a disastrous year for the company and, as news of the 3DS’s less than stellar sales released, I continued to eviscerate them. Hard not to when their stocks plummet and their head honchos take large salary cuts. But things have been looking up for Nintendo as 2011 starts to end.
In an unexpected move, Nintendo slashed the price of the 3DS from $249 to $169, there are new games to help bolster the release launch titles that the game had, and sales numbers have shot up immediately once the price cut went into effect.
But is that enough?
Yes, sales have increased, but is the demand really there for the 3DS? For that matter, is there a large enough demand for the handheld market? For now, yes there is. But rather quickly, I fear, that will change.
After all mobile gaming is still on the rise along with the proliferation of smartphones amongst both gamers and non-gamers alike. Currently 40% of mobile phone owners use a smartphone and the number is expected to increase. And that is just the smartphones. The iPod Touch, which is just like the iPhone except the phone feature, is very popular and sold more than the iPhone itself.
Yet the problem for Nintendo is that their key demographic have continued to move away from handheld gaming systems to smartphones and iPod Touch. According to a Nielsen survey conducted in 2010 children, ages 6-12, wanted an iPad (31%) with the iPod Touch and computer, both tied, following with 29%. Nintendo’s DS came next with 20% while the 3DS was at 20%.
For Nintendo their target audience has always been children and teenagers. From the visual style, to the characters, and even the gameplay all of it is made with children in mind. And if their E-rated games, E stands for Everyone according to the ESRB, attract older gamers then that is just a bonus. Because Nintendo has been able to attract young gamers they are able to instill a sense of loyalty in their customer. It is one of the reasons why Nintendo has continued to do so well throughout its history.
They have been able to make hardware and software that appealed to a young demographic.
But the wants of children have changed.
In an article, back in January 2011, it was said that 19% of children worldwide, ages 2-5, knew how to play a game on the smartphone according to a poll. But that was back in January. Now that we are in October I would love to know what the statistics are because, more and more, children at younger ages are being introduced to smartphones and computers which have the opportunity to grab them faster than Nintendo can get to them.
Without even trying smartphones are reaching children through the parents who constantly use them and let their children use them. Can Nintendo’s 3DS, and even Sony’s Vita, compete against that?
I would have to say no. Yes, the sales numbers might be promising for about another year but the possibility that the Vita and 3DS could be the last generation of dedicated handhelds is very strong.
But Nintendo has the ability, out of anyone else, to really take advantage of the mobile gaming market. The problem, though, is that Nintendo continues to bury their heads in the sand when it comes to mobile gaming.
Out of all their competitors, the majority of Nintendo’s franchises are perfect for mobile gaming. Their games are simplistic, don’t rely on top-of-the-line hardware, and are still a lot of fun to play. The Mario and Pokemon franchises, for example, would transition over to mobile gaming very well. Pokemon, especially, is so simplistic that it could make a killing on the mobile market without even trying. Even the Zelda handheld games would be a great addition to the market.
In fact, many of Nintendo’s handheld games would do well within the mobile gaming market. They just have to lose the concept of charging $30 for a game and make the games $5 or less. The amount of smartphone users, and mobile gamers, far outweighs the handheld market or, if it doesn’t, it will in a short amount of time.
Nintendo just needs to go in the logical direction. Drop the 3DS and develop their games for the smartphone. Or, at the very least, follow in Sony’s footsteps and create their own smartphone and keep their games exclusive to it. Nintendo just needs to make sure that such a device will be able to go up against the iPhone and Android devices already dominating the market.
But what do you think? Does Nintendo’s future lie with mobile gaming? Or will the 3DS continue to be a sellable product?
Author’s Note:
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