The Nintendo CEO has expressed concern regarding the companies future profits if they fail to differentiate their products from the iPhone.
Nintendo profits halved in the last year, from 133 million yen to 66 million – much of which they are attributing to the iPhone / iPod touch. Nintendo president, Satoru Iwata is an Apple fan, with a Macbook and an iPhone of his own. He has dismissed a rivalry between Apple and Nintendo, but admits that Apple are taking quite alot of their market share.
“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,”
Indeed. The iPhone incorporates email, phone, texting and the Internet plus 100,000+ apps and games, whereas the Nintendo line typically serves one purpose – gaming. It is said portable gaming has peaked, numbering the days of the DS and PSP. Some sources believe the iPhone will be the main portable game competitor in as few as 5 years, possibly commanding $2.8 billion in 2014. An interesting development.