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DS successor to launch within 15 months

Fri 15 Jan 2010 11:23am GMT / 6:23am EST / 3:23am PST
HardwarePublishing

New hardware can renew publisher interest and beat competitors to market, says EEDAR

Nintendo is likely to officially announce a new DS console this year, with the hardware on the market in under 15 months, according to EEDAR's Jesse Divnich.

A slowing of support from publisher partners and a desire to remain ahead of any competitors will result in new hardware, said Divnich, despite a record year for the format in 2009.

"Even though the Nintendo DS posted a record year in 2009, EEDAR expects Nintendo to make an official announcement on the DS2 within the next eight months," wrote Divnich.

"Nintendo has always had a controlling stake in the handheld market, despite facing numerous competitors, and EEDAR believes one of the biggest reasons for Nintendo’s success in the handheld market is their ability to remove opportunity gaps for competitors to enter. Nintendo’s transition from the GBA to the DS, a year earlier than anticipated, was a brilliant strategy to remove any upper hand the Sony PSP could have by being first to market."

New hardware will also help Nintendo fend off the piracy market, and entice publishers back to handheld gaming, said Divnich.

"Piracy continues to be an issue, not just for Nintendo, but for its third-party publishers as well. Whilst the release of the DSi has slowed down piracy, that slow down will only be temporary as hackers have already managed to bypass the new security systems built into the hardware."

He added: "Many publishers including Sega, Capcom, and now Ubisoft have all expressed that they may be reducing their exposure to Nintendo’s consoles, which will likely lead to heavy declines in both hardware and software sales for the Nintendo DS."

Earlier this week French publisher Ubisoft said that it was concentrating on the Xbox 360 and PlayStation 3 formats in 2010, following poor sales of DS software in 2009.

"The considerable contraction in the DS market during the year particularly affected Ubisoft, leading to a €160 million, or almost 50 per cent, year-on-year drop in the Company’s casual segment sales," admitted CEO Yves Guillemot.

9 Comments

Antony Cain
Lecturer

263 21 0.1


and

"Even though the Nintendo DS posted a record year in 2009, EEDAR expects Nintendo to make an official announcement on the DS2 within the next eight months," wrote Divnich.

don't seem to belong in the same story. I'm no expert but aren't Ubisoft DS games based on film, TV and boardgame spin-offs? That could explain more about the lack of success than the DS's "problem"...

Recent stories seem to be so contradictory, with companies boasting record sales and big losses at the same time.

Edited 1 times. Last edit by Antony Cain on 15th January 2010 11:54am

Posted:4 years ago

#1

Matt Martin
Editor

173 113 0.7


And the top 5 UK DS games were all first-party: http://www.gamesindustry.biz/articles/te...

Posted:4 years ago

#2

Antony Cain
Lecturer

263 21 0.1
That makes more sense :)

Posted:4 years ago

#3

Jim Webb
Executive Editor/Community Director

2,270 2,439 1.1
Unless Nintendo plans to take a whole new direction with a successor handheld, the problem publishers are facing will remain.

But they'll face a far bigger problem in that the DS has a 125 million install base to work with. A new handheld takes it all back to zero and that certainly cannot be a better position for 3rd parties to be in.

The arguments in favor of the handheld don't add up. And the timeline presented doesn't work well either. Record sales and little indication from Sony that they are in a hurry to release a new portable themselves. Sony is gaining profits from the PSP, despite much lower sales this year, making it a product they aren't willing to do away with anytime soon.

Posted:4 years ago

#4

Martyn Brown
Managing Director

138 33 0.2
R4 carts have decimated the DS marketplace. They're dirt cheap and easy to source, as a parent I know that pretty much most of the kids have DS consoles and 9/10 have R4 carts. This is why the console is selling well and software is slowing or not showing anything like the growth, in fact it's declining. Nintendo needs to sort this out, although it's too late for DS.

Posted:4 years ago

#5

Jim Webb
Executive Editor/Community Director

2,270 2,439 1.1
90% of the kids you know with a DS have R4 carts? I'd be surprised if 90% of them knew what an R4 cart is. Perhaps it's a regional issue. Here in America few know what they are and even fewer actually posses them.

In my opinion the biggest reason why software isn't trending with hardware is because of multi-unit ownership. My home has 5 DS units in it. 1 original, 3 Lites and 1 DSi. But we don't buy multiple copies of games.

The upgrade rate of current older model owners and multi-unit home ownership are just as responsible (at least in the US) for the disparity in software to hardware as R4 piracy.

Posted:4 years ago

#6
Actually everyone who thinks parents don't know needs to get on a plane. I see a LOT of kids (travelling with their parents) and they have R4s in their DS. It may not be 90% but its certainly 50% or more. And the parents do not see that it is wrong, any more wrong than taping from the radio. People know what i do for a living and still say they have movies from the internet etc etc. I don't pirate at all and tell them its wrong, but it does not sink in. I think the only way is to make it impossible to pirate ; perhaps you can only get your games on a server and your local machine is a viewer only - not practical for a handheld device but.. The GBA market was killed by pirates, the DS is possibly going the same way. I hope not but pirates don't give a damn, and unfortunately education is part of it.

Posted:4 years ago

#7

Phil Elliott
Project Leader, Collective; Head of Community (Live Team)

163 29 0.2
I'd echo Martyn's comments - I've been shocked at parents I've discovered who have no other interaction with games whatsoever, but are really pleased at the "collection" of titles they sorted for their kid's DS...

Posted:4 years ago

#8

Jim Webb
Executive Editor/Community Director

2,270 2,439 1.1
Must be far more prevalent in Europe than in America. The closest thing to an R4 card you can actually buy here is the Datel Action Replay and I can't imagine those having a nearly 50% attach rate to the DS sales in the US.

Posted:4 years ago

#9

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