gossomer on 30 September 2010
Everyone's focus on Hardware is part of the issue here... Software is the biggest driver of earnings for 1st party. They make more money and it insures the life of the hardware.
Nintendo has clearly won this cycle on Hardware, there is no doubt.. but has not won on software. With the huge install base on hardware they are tracking down 20% on software this year and likely down another 20% next year. At this point in the cycle for PS2 software tracked flat to down 5% for these two years.
Nintendo is in a position where they need to introduce new hardware to drive software and get back to growing earnings.
