Back in the day, the common household paraded around Nintendo’s latest gaming console, and goggled at every E3 unveiling. Shingeru Miyamoto, a once major gaming producer, had dominance over any other company, and ran competitors into the ground. Twelve years ago, Playstation stood no chance against the empire Nintendo built. Even when the Nintendo Wii entered market, Sony’s Playstation 3 and Microsoft’s Xbox360 initially lost profits while Nintendo raised millions (Kuchera). Nowadays, however, when comparing Nintendo to other gaming kings, the general public favors anything non-Nintendo. Some people attribute their profit loss to the rise of Apple and iPhone apps, others argue Nintendo’s products attract soft-core gamers, and the rest assume Nintendo’s current failure stems from faulty hardware. In reality, the reasoning for Nintendo’s blunder does not depend on one aspect alone, as most people argue, but rather all three together in a process of elimination.
One reason many people assume as the reason for Nintendo’s sudden sales slump is the rise of Apple and iPhone apps. Apple, and competitors like Droid and HTC, offer addicting games as detailed as a small Nintendo DS game for prices less than pocket change. This severe under pricing steals many consumers from the major console kings, thus harming sales. According to Nintendo’s president, “iPhone games are hurting us because their prices are too low.” If a fraction of a sales target opts for a competitor’s product, then the original company struggles to stay afloat. Apple has a large amount of consumers, too. For example, iPhone 4S sold over four million units in a single week (Leclair). App creators gained four million new potential buyers. Furthermore, recent studies show in 2011, kids aged 2-5 have access to iPhone games (Coldeway). People say this large amount of potential buyers detracts from Nintendo’s profits solely, rather than hardware or desires.
However, other people oppose Apple since studies show a greater effect sent Nintendo into turmoil. Percentagewise, only a fraction of Smart-Phone users pick up a ninja sword, or fling birds through buildings. Although over 30% of kids play iPhone games, 91% of kids and teens play videogames. In the United States alone, 91% translates to 64 million consumers (Coldeway). Furthermore, major companies have plenty of advertising funds, while small time Smart-Phone app makers scrap together jars of quarters for their products. In addition, although tens of millions of consumers purchase a cheap $1.00 app, a single person buying a single Wii game rings up the same profit as fifty different dollar apps downloaded by fifty different people. Furthermore, since only a third of games sold belong to phones, the other two-thirds sold belong to the gaming companies (Kjetland). While some people consider Apple the main threat, others disregard their claim.
Some people argue Nintendo’s latest products, unlike Sony’s and...