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mrstickball said:

...So why did Nintendo put a camera on the DSi?

Here's why

That was my first though after unveiling a camera in new DS redesign, the thing is huge in Japan among teenage girls, it's purikura. Nintendo seems have no problem in serving people's needs if they fits their business model and weren't massively served by others (i.e. so called media features). As a result a lot of borderline game\application titles, e.g. WiiFit.

Despite of common belief nothing in DSi is media feature, nothing even suggests it's trying to compete with smartphones except for one improtant thing - DSiWare. Think of it as roadblock preventing smartphones from moving upmarket, or actually giving space for relatively low-end gaming on handhelds, that's an opportunity for 3rd parties such as Gameloft that are successful in mobile gaming to make business on handhelds as well.