Ignoring the conflation of handheld and console markets and the predictable Nintendo doomsaying, the paragraph below is the one that jumped out at me. I wonder if Iwata actually said that, or if it's just rumour-mongering.

Either way, I don't think we're going to see Iwata pull out his iPhone in any more interviews.

http://business.timesonline.co.uk/tol/business/industry_sectors/technology/article7118570.ece

Satoru Iwata, the Nintendo president, is understood to have told his senior executives recently to regard the battle with Sony as a victory already won and to treat Apple, and its iPhone and iPad devices, as the “enemy of the future” .

uhoh, apple is screwed....

nintendo should move into the cell phone business,

the HW quality from nintendo and have their partners do the OS with opera browser with best flash and have it play |DS games.

or just partner with apple.

Nintendo/Apple Corp.

famousringo, assuming Iwata said that, do you think he´s right about considering Apple direct competition?...is this Nintendo already assuming sooner or later Apple will come for them and trying to take precautionary moves?

...no, the phone will have bad graphics, casual flash games, and you will only be able to dial the phone with an external wiimote type device...and for some stupid reason, the darn thing will sell so much it will gain almost 50% marketshare in the cellphone industry...

spoiler: I kid I kid, please don't torch me!!!!

Interesting, but when it comes to Nintendo's game strategy, Apple does seem like the company with a similar mindset.

I think they're more afraid of indirect competition from Apple.

Apple is basically making mobile PCs, but iPhone OS is the first mobile PC platform to develop a vibrant and lucrative game market. People buy iDevices for media, internet, communications,  a little productivity, and then when they're bored they try grabbing some games for a buck or two. The danger is that App Store games, which are vastly cheaper than DS games, may become 'good enough' that people don't consider buying a dedicated gaming handheld for entertainment and Apple beats Nintendo to the new users.

Nintendo has a firm position as a developer of premium handheld games. The danger is that those premium games may get driven into a market niche for enthusiasts who are willing to pay top dollar for the best handheld gaming experience. Most people just want to kill a little time on the bus.

I see, very good explanation there...makes sense, especially the "may become good enough" part being a possible threat to Nintendo´s dominance in the handheld market.

Well yea they are going to acknowledge it haha. After having that decline, they have to be fiery at something. Considering it wouldn't be wise to pin it on the PSP, as it is in heavier decline, the obvious good PR is to attack a rising competition. And the 3DS has already seemed like an "answer" to the rise of the iPhone along with the recent edition of the DS... the DSi. It's doubtful Nintendo will ever include phone functions, but I do think Nintendo is really going to assert their future handhelds as a device that does a whole lot more but has the key advantage over its competitors: its first party software. We'll see how they are able to tackle that at E3.

If this is true I wouldn't be suprised. Sony is quickly waining in power even though the PS3 is starting to resurge. I think Nintendo realizes that cell phones are beginning to compete against Nintendo's handhelds. The question you have to ask is if Nintendo is being threatened by cell phones how long before Nintendo adds phone technology to its handhelds.

Nintendo prides itself as a gaming company but increasingly is offering non-gaming Apps like Netflix and Opera. I wouldn't be suprised if Nintendo signed up with Bell or one of the other major cell phone company to sell a cell phone like handheld.

My bet is Nintendo will add a Skype like application to the 3DS. Enabling users to call and message one another free of charge, I can't see Nintendo selling 3DS as a cellphone or infact launching a cell phone. Instead Nintendo will likely add cell phone like features to the 3DS. Think about it a second Nintendo was already moving in this direction with PictoChat. Imagine an online version of picto chat with the camera and mic.

I mean seriously the camera built into the 3DS could easily act as a video calling feature enabling 3DS owners to vid chat with one another. Let alone call phones using a Skype like program. I mean up untill recently you could call peoples phones using MSN Messenger so I can't see it as too much of a longshot for Nintendo to implement such technology in the 3DS.

Steve Jobs better watch out if Nintendo goes after the I-Phone then Apple is going to have a major fight on its hands, Microsoft is a piece of cake compared to the hell Nintendo could rain down on the I-Phone if they directly attacked it!