Sony will exit the game hardware business before Nintendo does.
Counter points to this, it's not all that bad for Nintendo ...
- The Wii is the no.1 selling console of the past generation and Nintendo has built up a monstrous cash vault due to it and the DS' success which will sustain them for ages. They'd have to lose money for TWENTY more years at the same rate to finally go into debt. Counter that with Sony which has several billion in debt owing right now, so much so that the debt rating on Sony was downgraded (which is horrible).
- The Super Mario games are selling their biggest numbers since well ... ever (even bigger than the 1980s hey day on the NES). Super Mario 3D Land and Mario Kart 7 will both clear 10 million life time easily, New Super Mario Bros. 2 will likely go above 15 million. Lets not forget software is where the real money is made and Nintendo still has a reliable roster of hit IP to always come back to. Mario has rebounded big time from a down period on the GameCube and Nintendo is very effective at using nostalgia.
- The Wii U will have a year head start and looking at recent NPD data ... it looks like the market is starving for new hardware. They probably could clean up if they have a solid launch lineup. Will the Wii U repeat the Wii's success? Maybe not. But it should pretty easily top the GameCube or N64 and even the SNES if Nintendo plays their cards right.
- The 3DS is selling fantastic in Japan and is poised to be the go to platform there for the next 5-6 years. It looks like they could not only get the DS audience back there but also the PSP audience there too as Vita is in big trouble. In the West things are tougher, but it's not like the 3DS is not selling anything at all, the 3DS had strong holiday seasons in both the US/Europe to be able to hit 15 million instal base already.
- Nintendo should return to profitability next year. The 3DS will begin turning a profit again in just a couple of months.
- The influx of uber-casual gaming on iPad/iPhone (ie: Cut the Rope) is moving Nintendo back towards catering more to core players. Which isn't the worst thing in the world. Gimme Fire Emblem and Kid Icarus over Cut the Rope anyday.







