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Free 3G Wireless For Nintendo's Next Handheld?
itwbennett writes "'Nintendo is feeling the sting of competition from the iPhone,' writes Peter Smith in a recent post. 'At least, that's the feeling one gets when reading Nintendo president Satoru Iwata's thoughts on the future of Nintendo handhelds. According to a Financial Times piece, Iwata suggests the next Nintendo handheld (and to be clear, he isn't talking about the big screen DS launching in Japan next month) might include free 3G wireless, much like the Amazon Kindle does. The challenge is to offer the immediacy of downloading an inexpensive new game, anywhere, anytime, without forcing the user into some kind of monthly data plan.' From the FT piece: 'Only people who can pay thousands of yen a month [in mobile phone subscriptions] can be iPhone customers. That doesn't fit Nintendo customers because we make amusement products,' Mr Iwata said."
Not really innovative they are just in the first in the hand held gaming industry to want to offer free access to a network. No doubt it will end up being some what similar to Amazons evdo network for their kindle. Think Nintendo kindle for games (at least that's what I get from the article)
The challenge is to offer the immediacy of downloading an inexpensive new game, anywhere, anytime, without forcing the user into some kind of monthly data plan.
There won't be a monthly plan, because it was be bundled into the price upfront. I also wouldn't be surprised if the median owner rarely used their 3G connection, and were subsidizing the small minority who uses it. There's a problem when Nintendo's handheld is more expensive than their full console. Especially when a large part of the success for the Wii is attributed to it's low price point.
Tethering your PC to an ISP that doesn't route packets to anything but Nintendo's Shop Channel servers won't accomplish much.
Perhaps I'm biased, since I love my DS, but I really don't see how the iPhone is hurting the DS in any way. My girlfriend owns both a DS and an iPhone and beyond the initial "Oh look at this cool game!" reaction, I've never seen her play a single game on the iPhone.
Are there really games on the iPhone that people would be willing to invest time on? Even with all the hype and articles about the issue, I really don't get the sense at all that the iPhone is in any way taking customers from Nintendo or Sony. Saying iPhone games are convenient is like saying regular cell phone brick games or tetris games are convenient - it doesn't change the fact that it'll drain your battery in an hour and fifteen minutes and isn't particularly engaging anyway.
There's no way an iPhone replicates "70-80%" of the functionality of a DS or PSP, they're two different things.
The way I see it, Nintendo isn't looking to gain back market share or anything - its sales definitely are not weak or faltering in any way, 115 million units compared to the PSP's 56 (or the iPhone's 21). Instead, they're probably just looking to expand their market more and more, and they may feel that downloading little or full-size games whenever the user wants may be the way to do it.
I don't have a Kindle, so someone correct me if I'm wrong, but I believe the concept is, the Kindle isn't a 'general purpose' Internet device, like a smart phone - that is, I don't think you can really just browse the web, stream audio and video from youtube, hulu, or whatever. Basically, the data connection on the Kindle is special-purpose - for downloading Kindle eBooks/eZines/eNewspapers, which are a) relatively small, and b) the price of the 3G network bandwidth for the download is essentially bundled in the price of the content you purchase.
So, Amazon, I think, worked out a deal with carriers in different countries to pay for the cost of the downloads, by sharing the revenue generated by the content purchases with the network operators(granted, there is also some activity, like the user browsing the amazon kindle 'store', which doesn't directly generate revenue, but which is recovered by the user purchases).
In such a business model, the individual users are probably generating, collectively, much less bandwidth-use per device (on average) than your average smart-phone user, so the costs to the 3G network operator are relatively small. Any users who are using a lot more bandwidth than the average user are also paying a lot more for content than the average user, so the high-use users pay for themselves (as do the low-use users).
I could very easily see Nintendo working out such a deal with network operators if the only thing the online connectivity is used for is browsing the Nintendo store to find and purchase games/DLC, and then download the games after purchase. If, however, the Nintendo device allows web browsing and online play against/with other Nintendo users, then I have a harder time seeing that business model succeed (because the users, then, aren't necessarily paying indirectly for all the network bandwidth they use).