CNBC reports Nintendo is not releasing the 3DS, their 3D version of the popular hand-held gaming system, in time for this holiday season. Nintendo president Satoru Iwata told analysts the company would not be able to supply enough units, if the 3DS was released this year. As a result, Nintendo cut its full year profit by 1/3.
Devices like the iPod Touch and iPhone have been gaining gaming market share. Consumers are attracted to the inexpensive cost of the games which typically range from free to $9.99. For dedicated gaming devices such as the Nintendo DS or Sony PSP, it is rare to find a game for $9.99. Most games will typically cost the consumer around $30.
With the 2010 holiday season a wash for Nintendo, will they be able to make up the ground in 2011 or will other devices continue to erode their market share? If they can make the devices and games available to consumers for a lower cost, Nintendo may still be able to stay relevant in this market. If they cannot reduce costs, they may go the way of the PDA.
Hope this helps someone...
Bryan