Nintendo DS sales crashing due to popularity of Apple’s iPod touch

Apple Online Store“Nintendo on Thursday faced its first loss in two years as its own lineup and competition from Apple hurt its business,” iPodNN reports. “The company lost the equivalent of $288.5 million after DS sales were cut in half from 5.97 million a year ago to just 3.15 million this spring. The drop included a 33 percent fall in sales in the US during June alone.”

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“The company blamed the shortfall on a lack of new games for the twin-screen platform: both Nintendo and third-party developers released about 168 games this spring where 278 were new on shelves a year ago. About 23 percent fewer copies, 22.4 million, were sold,” iPodNN reports. “The poor results may stem partly from the lack of changes to the DS. Last year, Nintendo had the advantage of the just-released DSi to buoy its results, but the DSi XL isn’t considered a replacement. The existing platform itself is old and is still using most of the same basic components that were used in the original DS in 2004.”

iPodNN reports, “Nintendo’s performance is nonetheless believed to be affected directly by iPod touch, iPhone and now iPad gaming. Although the Japanese firm has publicly insisted that it isn’t in competition, the growth of iOS as a game platform is known to be taking revenue away. It’s unknown how many Apple device buyers are choosing one over a Nintendo system, but Nintendo game revenue has lost share to Apple even though iOS games are often just a fraction of the price of DS titles.”

Read more in the full article here.

MacDailyNews Take: Apple’s iPad and iPhone aren’t helping Nintendo, either.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

35 Comments

  1. DS = Walkman. next Apple roadkill.

    if it were just the hardware, that would be bad enough. but it’s the price of the games that is the real killer. parents are tired of paying ridiculous prices for games to shut their brats up. now at least with iThings their cheap.

  2. “They stated the lost money due to Apple, Cant you read.”

    Arr.. no they didn’t. That was iPodNN which probably isn’t the most unbiased source.

    Funny how this was left out of the article too

    “The game maker said it booked a foreign currency-related one-time loss of 70.5 billion yen.”

  3. @rolleyes

    Nintendo doesn’t make shovelware that’s the third party developers. Some nintendo made games may have been rereleased with motion controls but I would hardly call the handful of first party games shovelware.

  4. I wouldn’t count the DS out yet. The iOS is releasing a whole bunch of casual games, little 99 cent puzzle games that kill people’s boredom on the subway. I love the high powered RPGs like Final Fantasy III, but I wouldn’t play them on my iPhone, given its lower battery life and such. For those, I would stick to the DS.

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