Nintendo Verses Apple and Android

[Nitroactive]

It's a common topic among technology and video game analysts. I'm talking of course about the classic debate of smart phones verse gaming consoles. Now there is new information to add to the fire, and once again it doesn't look good for Nintendo, or Sony for that matter.

iOS and Android gaming has rapidly been gaining popularity over the past two years. According to analyst group Flurry, game revenue for iOS and Android devices has risen 39% since 2009. Contrarily, game revenue for the Nintendo DS has fallen 34%, and likewise with Sony's PSP, which saw revenue fall 5% since 2009. So, while iOS and Android have nearly tripled their combined market share to a staggering 58%, Nintendo has been reduced to 36% of it's once 70%, or currently about 1/3 of the market share. Flurry Analytics put together a chart of the percentages seen below.

To help put this in perspective, I'll put these percentages into more understandable dollar amounts. In 2009, 2010, and 2011, iOS and Android devices generated game revenues of $500 million, $800 million, and $1.9 billion respectively. If we combine Nintendo and Sony's posted revenues for 2009, 2010, and 2011, they generated $2.2 billion, $1.6 billion, and $1.4 billion respectively.

As you can see by the numbers for 2011, iOS and Android devices actually surpassed the generated game revenue of both Nintendo and Sony combined. There is a very clear increasing revenue trend for iOS and Android, while both Nintendo and Sony are following very clear decreasing trends.

So you're wondering what this means for Nintendo. Simply put, it's deepening the hole they are already in. Nintendo is finding that it's very hard to market $40+ games along side the $.99 games available in the iOS and Android app stores. Combine this with the growing user base of smart phones, and the fact that smart phones are growing much more powerful in terms of hardware, and you see the unfortunate situation Nintendo faces.

As Nintendo moves into 2012, they face new competitors like Apple and Google. The launch of the Wii U will not just be competing with new consoles from Sony and Microsoft, but also plans from Apple and Google to launch new televisions that will give users access to many more games. Like I discussed in a previous article Nintendo faces a real possibility of becoming a software only company, much like Sega, if they cannot figure out a way to face this new competition and become profitable.

Source

[Shaymins]

Smart phones do not have the capability to create a true gaming expirience. The main reason they are used to play games is because of easy access, but games in phones are relatively short and not truly engaging. Although they're use may appear to be decreasing, game consules won't be out out of the picture any time soon.

[Logman]

While a smart phone doesn't have the ability to create in depth gamin experiences as Nintendo might, the cost of these games plays a huge factor in my opinion. While smart phones do cost quote a bit per month, the cost of games is much less than the cost of games for nintendo. And since so many people already own smart phones they already pay for the cost of the services provided (phone, text and internet) and a few dollars spent on a game isn't much extra compared to the price tag of $40 or $50 per game for a console.

[Nin10DoGuy]

I think Android and the Smart Phone were created by, well... not-so-smart people.

[CircusHead]

People that think iOS and Android games compare to any game from Nintendo, Sony or Microsoft needs their head examined. They have yet to gain real gaming experience. This will blow over. Both PSP and DS are getting old. That's like saying in 2005, GAMEBOY IS DECLINING IN SALES!

[KAYZEE]

what sorcery is this


smart phones =/= gaming consoles

[Hyperr]

Funny how Ninty thought casual gamers would last longer than their hardcore gamers.
How's it feel to be abandoned Ninty? </3

what sorcery is this


smart phones =/= gaming consoles

gaming consoles =/= portable gaming

[DRAGON2551]

i have hope Nintendo will out due a phone

[machogrubba14]

well the 50 to 40 dollar games make up for the 80-100$ bill of a cellphone per month, and also DS games cost about 35 dollars! I personally enjoy playing street fighter 4 3d edition, than street fighter 4 bolt!

[Viewtiful_Josh]

Playstation Vita will probably fix that for the PSP.

By the way, why are games on a phone being compared to games on a handheld other than being mobile?