Smartphones not to blame for sluggish 3DS sales, says Iwata
Nintendo head Satoru Iwata claims smartphones aren't hurting the 3DS market, instead attributing the slow sales to a lack of compelling software.
Between a hefty price cut, generous make-good offer for current users, and an executive pay cut, Nintendo has made no bones about its 3DS sales woes. But company president Satoru Iwata objects to the idea that smartphone competition is the driving factor, instead blaming slow sales on a lack of software.
"We have repeatedly investigated whether social games, as well as smartphones, are actually affecting our business," Iwata told investors (via CVG). "We got the same results in our latest research that there are no causal correlations. On the other hand, it is the fact that a great variety of games are available at very low prices for smartphones. Naturally, consumers will choose more affordable ones if the video games we provide do not have much more value than those available for smartphones."
Iwata went on to suggest that consumers recognize the "unique value" of Nintendo's retail games. "The biggest reason of the sluggish sales in this first quarter is that there were no big hit software titles in this period," he said. "With the just-announced markdown, we intend to drastically change the situation toward the end of this calendar year, to realize a situation that a number of you cannot imagine today and to have many people acknowledge that there are no causal relationships between our business and either smartphones or social games."
Even if the price cut leads to higher 3DS adoption rates, the price of smartphone games seems to be the elephant in the room. Many 3DS titles cost roughly $40, while the iPhone market saw a race to the bottom with many titles being offered for 99 cents, or free with microtransactions. Nintendo has a strong stable of first-party games on the way, but is counting on consumers to put stock in games with higher production values.
"The keyword 'social' has rapidly become very popular in these last two years and some say that Nintendo may be behind the social age," he said, directly addressing the growing sector. "They might mean that Nintendo, uninterested in so-called social games from a business standpoint, fails to ride on the boom of social games," Gamasutra overheard.
"However, I have a totally opposite view - Nintendo has been a company attaching a high value to human relationships for a long time. We have our roots in the playthings connecting to people, as the company's original business was playing cards. Therefore, we have always been aware of the human connections created by each of our products."
Iwata insists that while social networking facilitates player relationships over long distances, he says "there has been no best answer yet to the relationship between a real network and a virtual network." He says Nintendo's goal is to provide both in-person experiences and virtual networks, including a mixture of the two with features like the 3DS StreetPass.
Nintendo has been somewhat reluctant to embrace smartphones, which is unsurprising since the company is so keen on developing for its own platforms. However, when the company announced a Pokemon-based app for iPhone and Android devices, their stock value ticked upwards -- before settling back down upon comments that Nintendo wasn't investing seriously into the smartphone market. Analysts took this as a sure sign that Nintendo should look more seriously into developing for these platforms, but the company seems to be sticking to its guns.
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Steve Watts posted a new article, Smartphones not to blame for sluggish 3DS sales, says Iwata.
Nintendo head Satoru Iwata claims smartphones aren't hurting the 3DS market, instead attributing the slow sales to a lack of compelling software.-
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Kinda dumb that Nintendo refuses - REFUSES to compete against Apple.
Nintendo needs to create and sell "objects of desire" - they need some really awesome industrial designers (Japan is full of them, just look at any Anime) to make their handheld look and feel like something from 2025. The 3DS is a sad excuse for a high-end electronics handheld. It's plastic and cheap feeling. Apple, on the other hand, makes their iPhone and Touch out of metal and glass, and it's wafer-thin.
Nintendo products look and feel like their made for kids - one step up from Fisher Price.
They are getting more mature games on the Wee-Yoo, so that's a start.-
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I dont know what you guys are talking about. I think that adult gamers are typically not so shallow that they only buy handheld gaming devices based on their sex appeal. Sure, its a nice perk, but it is NOT the driving force behind sluggish sales here. Software sells hardware, and the 3ds has a really poor selection currently.
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What part of this is not well thought out, reasonable and indicative of a sincere effort to ascertain the facts. Something that apparently escapes a segment of the shack. Further more, Nintendo has gone out of their way to be forthcoming on the issue of the sales. I see absolutely no reason to question their motives, methodology, or conclusions regarding this.
"We have repeatedly investigated whether social games, as well as smartphones, are actually affecting our business," Iwata told investors (via CVG). "We got the same results in our latest research that there are no causal correlations. On the other hand, it is the fact that a great variety of games are available at very low prices for smartphones. Naturally, consumers will choose more affordable ones if the video games we provide do not have much more value than those available for smartphones."
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So smartphones aren't kicking Nintendo's ass, but smartphone software is? Maybe the problem is the boss is a half-insane bullshitter.
It ain't 1986 anymore and an ugly plastic brick with physical content delivery isn't gonna cut it. Even if a 3DS was a nicely designed piece of hardware AND they had a great one-click all-digital purchasing and content delivery system it would still be a second device people need to carry around for mobile gaming.
Does Nintendo really think they're going to win the battle for pocket space when their feature overlap starts and ends with physically acquired and stored software costing 1000-3000% more than the competition's ethereal offering?-
The thing is the mobile gaming on the 3DS versus what's on the iPhone is completely different. They aren't really competing. Gaming on smartphones sucks. It's totally casual because the platform itself pretty much requires the games be totally casual. The 3DS can have more significant game experiences because the platform is geared more towards that.
Look at it this way: you cannot have a OoT experience on an iPhone (can you get a 10+ hour game on the iPhone?). It would suck to play it on that device plus people wouldn't be willing to pay the price premium for something with that much content. On the other hand, you shouldn't have an Angry Birds type experience on the 3DS because people are going to feel ripped off (unless it's via the estore or something and only costs $2).
Both mobile platforms, but completely different gaming experiences.
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I suspect smartphones and ipads are having *some* impact on the handheld gaming market, but overall yeah, everyone in this thread is right.. we have DSs already and they're not giving us a compelling reason to upgrade, especially not with the original pricetag. There aren't a ton of games that I want to play and can't right now. When that shifts so will my motivation to spend money.
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Nintendo is too enshrined to it's properties. It's so stuck on what it previously made, that it can't think to make new things.
Why is there not a Nintendo produced RPG at the launch? It was one of the strongest parts of the DS with the serious gamer, who have the early mindshare, and would have addressed one of the biggest problems with the system. They clearly have it in them, they did a clever rpg built in to the system for the Mii, but they're so stuck on making a perfect rendition of their old games, they're (generally) afraid to fail on new, interesting games.
I mean yeah they do new gimmick games. But god forbid they release a turn based strategy game that isn't Fire Emblem.
Nintendo isn't the only party guilty of this, but I think we can all agree they're the ones most crystallized by it.
Even though I still love them. :( -
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And 10 years ago people said the same thing. Now they've apparently hit their peak with this generation. Funny.
As long as Nintendo makes Nintendo games, it doesn't matter what glorious piece of shit hardware they unleash on the masses. It'll sell. Cartridges, mini-DVDs, underpowered and waggle. Nintendo has done it all, been declared doomed and survived it all or greatly exceeded all expectations. The only thing that can really bring Nintendo down is another gaming revolution that really changes the industry, but in that scenario, the other big console manufacturers share the same risk.
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