Monday, September 19, 2011

Apps from Nintendo? Not Any Time Soon!

The biggest app category in Apple’s App Store is games. However, according to The Loop, Nintendo does not plan to capitalize on that any time soon. Although Nintendo has been pressured by investors to begin designing games for iOS devices like the iPhone, the iPad and the iPod, according to comments made by Nintendo President Satoru Iwata, there are not any plans for games for iOS devices in the company’s near future.

“This is absolutely not under consideration,” Iwata told the Japanese news site Nikkei after a 3DS press conference. “If we did this, Nintendo would cease to be Nintendo. Having a hardware development team in-house is a major strength. It’s the duty of management to make use of those strengths. It’s probably the correct decision in the sense that the moment we started to release games on smartphones we’d make profits. However, I believe my responsibility is not to short term profits, but to Nintendo’s mid and long term competitive strength.”

However, tablets are on the rise. Will Nintendo need to change their stance in order to remain competitive?

“Collectively, iPad gamers are showing slightly decreased involvement with gaming on home consoles, mobile phones, and Nintendo handheld consoles,” Interpret analyst Jason Preston said in a statement. “These facts imply that iPad game developers and publishers can definitely reach a new audience on the iPad.”

Nintendo has already been going through some rough waters with the 3DS. In August the company had to drastically drop the price of their 3D hand-held device from $249.99 to $169.99. Nintendo felt that this was necessary to boost the sales numbers for the console a mere six months after its release.

On top of all of these issues that Nintendo is having, games sales are also down. In the July earnings report, Nintendo reported its first quarterly loss in its entire history. Despite this, Iwata does not seem to be concerned. He believes that Nintendo has a successful business model that will show its worth when the holiday seasons rolls around a little later this year.

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