Nintendo Profits Fall As Apple Makes Gaming Inroads

By

dsi-ll-wine

It’s no fun being a game console competing with Apple. That seems to be the lesson gaming giant Nintendo is learning as the iPod touch and iPhone become increasingly popular game platforms. Nintendo announced its last quarterly profits fell 52 percent, a $702 million drop from 133 billion yen to 64 billion yen.

Although the Japanese company did not specifically mention the iPhone or iPod touch, the company’s handheld DS platform “faces increasing competition from Apple Inc’s iPhone, which has become a popular platform for handheld games,” according to Reuters.


Such competition may be the reason for Nintendo unveiling an updated DS machine. The DSi LL features two 4.2-inch screens that are 93 percent larger than the previous 3.25-inch displays, larger pens and more colors (dark brown and wine red) in addition to the standard white. The DSi LL carries a larger price, too: $222 and will be available Nov. 21 in Japan and early 2010 in Europe and the United States.

Apple is making a point of positioning the iPod touch as a gaming machine. Along with company execs calling the machine “the funnest iPod ever,” the touch is benefitting from hardware upgrades making the iPod 50 percent faster. In September, the company also highlighted a number of well-known game titles for the touch, including Madden NFL. Likewise, game publishers such as Electronic Arts are discovering the iPhone and iPod touch as a platform.

The DS isn’t the only front on which Nintendo might be worried about Apple competing. Reports continue that Apple wants a piece of the game console market. While these reports have been around for years, the Wall Street Journal has become the latest to suggest such as move. The report comes as Nintendo sees Wii sales slowing.

[Via AppleInsider and Gadget Lab]

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