Well new research and stats from Analytics firm Flurry was released only a day or so ago right here. This research pointed to the growing revenue of mobile gaming and the shrinking market share of Nintendo and Sony's platforms. Well it would appear the Regginator wasn't about to let this damning report go unchallenged and decided to address the issue.
While Reggie didn't specifically mention the Flurry research he did reference it, it was his turn to address the issue while at the Bank Of Montreal's Capital Markets' Digital Entertainment Conference. He points out a huge flaw in Flurry's analysis saying "The fact is that it's a lot more complex, a lot more complicated, than conventional wisdom would have you believe." He acknowledges Nintendo's recent downturn but says "The fact is, disruption happens. But often it's not clear," Pointing to the fact that analysts are jumping to a conclusion that is based on Conventional Wisdom but might not be as clear cut and obvious as they think it is.
Reggie decides to use stats to support his claim as it is stats that are challenging it. Reggie turns to recent ESA research to prove his point. He points out that the number of homes in the United States with people who play games on a regular basis jumped over 5 points within the last twelve months. The rise is very drastic going from a 67% to a 72% this astronomical growth can't possibly be a bad thing for Nintendo. Then Reggie explains that at a glance mobile and social trends are on the rise, but points to the ESA research which states homes with dedicated consoles is also on the rise. In 2007 a meager 32.6 percent of homes in the United States owned dedicated consoles but today over 50% do.
Reggie refutes the claim that mobile game sales are cutting into Nintendo's profits "What becomes clear is that gamers aren't necessarily cannibalizing time from other forms of gaming so much as they're taking it from other forms of entertainment," says Fils-Aime. "New forms of games are growing, but not necessarily at the expense of other forms of gaming."
"As the video game industry continues to see disruption, Nintendo will both respond and continue to contribute to those disruptions." adding "This is more than just an experimentation on our part, it's already a growing part of our business," While it was pointed out that digital content on Nintendo's systems now account for a whopping 14% of Nintendo's profits. So Nintendo is adapting and turning to digital content to counter the growing digital market which is apparently cannibalizing Nintendo's marketshare.
So the question is, is Reggie actually justified in his argument? We know Nintendo has suggested in the past that cheap downloadable social and mobile games are a huge threat to the industry. Reggie seems to be taking an entirely different approach in this presentation.
What do you think, is Reggie in denial? Why the sudden change in Nintendo policy towards mobile gaming, one minute its the anti-Christ next it isn't a threat? Was this presentation to relieve jittery share holders? What kind of impact does this presentation have on the way you view the mobile and dedicated console industry? Does Nintendo have the right idea, or are they really slowly going the way of Nokia as Flurry suggested?
-JC7
"In God We Trust - In Games We Play " - Joel Reimer
