3DS is cannibalizing Wii U

[Soundwave]

curl-6 said:

Soundwave said:

It does affect their handhelds, though not to the same degree because handhelds is a market with traditionally very different demographics that have traditionally favored Nintendo. 

Such as people don't need as many handheld games per year, handhelds have a lower software attach rate because people use it as a situational product (ie: when I travel on an airplane, that's when I play my DS or whatever). 

Nintendo still thinks the console business should be this basically: 

Their handheld business still performs well despite the crushing march of Smartphones though.

They have the ability to get things right, they just aren't doing it right now with Wii U.

Actually I think they are internally more worried about their handheld business than their console one. 

The 3DS is not behaving like a healthy platform does, a healthy platform does not start showing year over year decline in what should be its peak and coming off its strongest software release schedule. 

Smartphones are like a slow moving cancer that slowly but surely are eating away at the handheld business pretty much unabated. Nintendo is desperately throwing everything they can at it (Pokemon, Zelda, 2D Mario, 3D Mario, Mario RPG, Mario Tennis, Monster Hunter exclusivity) and the situation seems to be growing worse, not better. 

To be honest I see it almost every day, kids overwhelming even prefer to play on an iPad versus a 3DS. I honestly think this scares Nintendo more than any challenge they have ever faced in the game business.