Angry Birds releases in late 2009, helps fuel the explosion of easy to play/casual centric gaming on booming smartphone devices.
In spring 2010, Apple introduces the iPad, which furthers the reach of iOS apps and starts to indoctrinate kids from a young age. I think Nintendo was OK with just the iPhone, but the double whammy of the iPad (which is primarily a product that doesn't require a contract) starts to accelerate the adoption of the iOS app marketplace at an alarming rate.
Coincidence that Nintendo's profits have been on a steady decline ever since? Probably not.
Nintendo's "decline" matches up almost perfectly with a corresponding explosion of gaming apps on smartphones and tablets beginning around late 2009.
Nintendo needs new ideas, not to cling to the past, even 2006. Times have changed. If I like arcadey/NES style easy to play games, I can get those for $1 on my iPhone or Galaxy. So what's your solution now Nintendo? Nostalgia only gets you so far.
Yamauchi was a smart man (though hardly infallable), but he did not forsee the coming of smart devices nor could he have known the impact they would have had.
