Nintendo Wii and DS Are Not Threatened by Social and Mobile Gaming

One of the main representatives of video game publisher and hardware maker Nintendo has said that the very rapid increase on both mobile and social gaming is not having a negative effect on traditional gaming linked to the Wii home console and the DS handheld.

Reggie Fils-Aime, who is the president of the American division of Nintendo, has told the audience at the BMO Capital Markets organized Digital Entertainment Conference that, “The fact is, disruption happens. But often it's not clear. The fact is that it's a lot more complex, a lot more complicated, than conventional wisdom would have you believe.”

Fils-Aime cited research from the Electronic Software Association that showed that in the last twelve months the number of homes in the United States who have a gamer has increased to 72 percent coming from 67 while at the same time an increase was reported in those houses that had dedicated home console.

The Nintendo leader added, “What becomes clear is that gamers aren't necessarily cannibalizing time from other forms of gaming so much as they're taking it from other forms of entertainment. New forms of games are growing, but not necessarily at the expense of other forms of gaming.”

Nintendo has been hit particularly hard by the transition to social and mobile games because it has traditionally relied on physical retail sales to generate revenue, with just 14 percent of its sales for the last year linked to digitally distributed content.

Despite this Fils-Aime says that Nintendo is ready to adapt and is now offering digital games linked to its biggest franchises, ready to make a bigger transition with its new Wii U home console and the already available 3DS handheld.

Video game industry executives have been recently polled about the digital revolution and the consensus seems to be that digital content will overtake retail in value in about three years.