I don't see this as a threat to Nintendo much. Honestly Level 5 won't make nearly as much money selling this iOS game what will they sell it at 5$ or less? The retail version of their software on DS generates much higher profits for both Level 5 and Nintendo.
In cases where Level five actually publishes their game they should make about 45% of the total 39.99$. In cases where they don't actually publish they should be bringing in around 15% which is still above what they'd make on iOS. They should be making at least about 6$ on every game they sell on Nintendo's platforms. On iOS I have heard Apple takes about 30% of the profits a game makes. So a 5$ game on iOS won't make the developer even 5$.
Now if Level 5 can bring in say 50% more consumers and increase sales by that much while maintaining a 5$ price tag or higher then maybe they can actually make money.
In the end I thin yah the title is going to be successful on iOS. But if it doesn't turn the profits it has on DS they will continue to make Nintendo titles. In the long term this is a bad thing for Nintendo but if the sales don't accumulate on iOS and their isn't as much profit to be made expect Level 5 to return to Nintendo with future software.
-JC7
"In God We Trust - In Games We Play " - Joel Reimer
