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The phone game market being this massive industry is a little bit of an illusion.

-The overwhelming majority of the income that companies like Rovio receive is from advertising. They reported that theirs was about 73 percent. I can't ever EVER see Nintendo covering their games in Ad's.

- It's an industry that is going to crash very hard, very fast. When you look through the reviews on most games 90 percent of them generally say that the game sucks and is laggy. One of the main reasons I really believe that Angry Birds and Candy Crush have taken off is because they are some of the only games that actually work well. It's also an industry that is completely built off of a casual market. We all have seen with the Wii U how fast the casual market can ditch.

- Nintendo making phone games would kill their own handheld market. Whether the 3DS is selling as well as the DS is irrelevent. The fact of the matter is that it is the best selling console in the industry and Nintendo has 8 games that have sold atleast 3 million each on the console. The most recent hit is Pokemon X/Y which is at 10.3 million ($400+ million). That's not struggling. It may not be DS numbers, but the DS was less then 3 million consoles away from being the best selling console in the history of gaming, that's a pretty tough comparison.

Here's my honest prediction. Nintendo will ride out the 3DS in the next 4 years or so and end up with 80+ million in console sales, and it will be a solid success. 80 million consoles sold is a success no matter how you try to spin it. Nintendo's next handheld will be something revolutionary. The Gameboy was revolutionary and then it had a successor in the Game Boy Advance. The DS was revolutionary and it had a successor in the 3DS. The pattern will continue and Nintendo will drop a bomb that will make a regular tablet seem lame. My guess would be Nintendo's own take on a tablet that is very affordable and incorporates virtual reality into it.