Comments on: Could The ‘DSi XL’ Harm Nintendo’s Image? http://www.couchcampus.com/lecture/could-the-dsi-xl-harm-nintendos-image/ Sat, 24 Jul 2010 22:09:50 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: deftangel http://www.couchcampus.com/lecture/could-the-dsi-xl-harm-nintendos-image/#comment-700 deftangel Fri, 30 Oct 2009 09:15:58 +0000 http://couchcampus.com/?p=3610#comment-700 Nintendo have been eying the Apple iPod upgrade model for some time and the DSi XL is merely an example of them pushing further into that, from Gameboy Advance SP to the DSi itself. I don't think the Wii price cut has much to do with it. That system has been insanely profitable for them since Day 1 and they've simply ridden out the unprecedented demand as long as they can. At $199 they are still making a ton of money on each unit, especially if that 45% production cost reduction figure is true. Nintendo don't need to cross-subsidize their home entertainment and handheld businesses, they each stand up on their own two feet. What the DSi XL illustrates for me is that Nintendo are still struggling to react to the iPhone. We've known this for a year though, so I don't see it as new news. Having successfully disrupted both the handheld & console markets in the last decade, Nintendo should be masters at adapting when it is them that become the disrupted. Next year, we're going to find out. Nintendo have been eying the Apple iPod upgrade model for some time and the DSi XL is merely an example of them pushing further into that, from Gameboy Advance SP to the DSi itself.

I don’t think the Wii price cut has much to do with it. That system has been insanely profitable for them since Day 1 and they’ve simply ridden out the unprecedented demand as long as they can. At $199 they are still making a ton of money on each unit, especially if that 45% production cost reduction figure is true. Nintendo don’t need to cross-subsidize their home entertainment and handheld businesses, they each stand up on their own two feet.

What the DSi XL illustrates for me is that Nintendo are still struggling to react to the iPhone. We’ve known this for a year though, so I don’t see it as new news.

Having successfully disrupted both the handheld & console markets in the last decade, Nintendo should be masters at adapting when it is them that become the disrupted. Next year, we’re going to find out.

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