Iwata: 'No Causal Correlation' Between Smartphones And Nintendo's Business

In the wake of Nintendo's 3DS price drop, many have claimed — including myself — that the 3DS has adversely struggled in the face of the increasing ubiquity of smart phone usage. In Nintendo's recent financial results briefing Iwata acknowledged those concerns, but claimed there was "no causal correlation" between the two.

"We have repeatedly investigated whether social games, as well as smartphones, are actually affecting our business," said Iwata. "We got the same results in our latest research that there are no causal correlations."

He did, however acknowledge, once again, that the low price of smartphone gaming was an issue.

"Naturally, consumers will choose more affordable ones if the video games we provide do not have much more value than those available for smartphones, he continued. "However, no causal correlations have been confirmed because we think there are consumers who acknowledge that the value of what we offer does not equal to that of those available for smartphones and that what we offer holds unique value."

It's a tricky situation for Nintendo, who seem keen to preserve the inherent premium value of its gaming experience whilst also attempting to reach broader audiences.

Sometimes you simply can't have your cake and eat it.


Comments

    If the games are there then I'll buy a 3DS without pause.

    As for smartphone gaming, to me it's like paying for oxygen. Why would I hand over money for something that's always been available for free?

      I completely agree. There's a lack of games for the 3DS (a SERIOUS lack of games given the amount of steel drivers lying around local EB's), and mobile gaming is only a distraction while we wait for some proper handheld gaming.

      That said, some mobile games are good value, but not enough compared to a Nintendo running on all cylinders...

    honestly though you get what you pay for. I havent yet played an iOS game that I have anywhere near enjoyed as much as the multitude of past titles on my old gabemoy/color/advance/ds

    I Gladly pay the extra for quality. Nintendo is good at quality, we just need more games to be finished and the 3ds will be fine

    Nintendo official documents also point to the earth being only 6000 years old and the sun revolving round the earth, not vice versa.

    Hello Nintendo, you alarm clock is ringing!

    Are these manicured PR exercises really indicative of Nintendo's future goals and objectives, as personally I think they should be metaphorically shitting themselves. Despite their attempts at innovation (motion control etc) they have demonstrated in recent times that the games industry as a whole is moving at a rate they just can't seem to keep up with.

    I see Nintendo have adopted the "if I ignore it, then it might go away" policy.

    Nintendo need to accept that the market has changed, or else they will become the next Nokia.

    “However, no causal correlations have been confirmed because we think there are consumers who acknowledge that the value of what we offer does not equal to that of those available for smartphones and that what we offer holds unique value."

    This statement is 100% correct. A forty dollar fully fledge game on an actual gaming device is a vastly different experience to a multitude of games on a smartphone. It's a completely different audience.

      Hi! I'm Pilotwings! I'm a rehashed Wii mini-game with no multiplayer or very much content at all. You can finish me in a few hours! btw I'm 69.95

        Hi I'm Little Wings, you can buy me on your phone for a the price of a pack of gum and you'll probably still be playing me after you've returned Pilot Wings.

      Well, you are probably right in that there is a different audience amongst core game buyers. The people buying Resident Evil: Mercenaries probably aren't psyched for the next Angry Birds. But you and Iwata are missing the point entirely. Casual gaming used to mean gameboy, the end. The DS sold in staggering fucking numbers, not because of the brilliance of The Phantom Hourglass, but because every little boy and girl out there screamed at their parents that they wanted one. The games were secondary to the device, because there weren't really any other viable devices. The iPod touch changed all of that. Parents can now pay close to nothing for games that their kids will enjoy just as much as any fully fledged ninty title. Nintendo's casual business is in fucking ruin, and they know it.

    I reckon this is also because major market for Nintendo products are the kids - adults, including myself, play their DS's religiously, yes - but a sizable chunk of it came from parents buying the console for their kids. A fair percentage of them would have bought their kids their DS within the last three years, and many of them would have upgraded their kids' consoles from a DS or a DSlite to the DSi or DSIXL within that timeframe. Convincing parents they should upgrade again, to a $350 console, was definitely a hard sell. I know this because I work for "a games shop".
    Also, a lot of them were nervous about the alleged damage 3D would do to their kids' eyes. Whether it's actually dangerous or not is largely superfluous - parents don't want to take the chance.
    And so, with their other market - the adults who just love Nintendo games - there obviously aren't enough games to justify the purchase. Also we know about things like the shit battery life, and that the inevitable 3DSlite will address a lot of the problems with the hardware, and by then there will be some killer titles available which will be worth the system for those titles alone.
    I think if Nintendo can stay in the game for another two years or so they'll start seeing an uptake in sales as those parents start upgrading their kids' consoles, and adults will have started buying them for the exclusives from well established franchises.
    Let's just hope Nintendo have some cash put aside for a rainy day though, because it'll be tough until then.
    I think the price cut will help, but the other problems are still there regardless of how much the console itself it.
    How much Vita impacts the 3DS is yet to be seen, but I think if it's a 3DS or a Vita, for a lot of adults, the Vita will win. It does for me.

    If Iwata keeps this up he might just have to take another 50% pay cut in the near future.

    Yeah 5 hour battery and lack of more then 2 games i want to play on 3ds is reason I am not getting 3ds and waiting for updated 3ds lite with better battery 5 hours of any iOS game only takes bout 20% of my phones battery and having trial versions eg like xbla might help nintendos casual market

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