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Nintendos Game Boy to Maintain Dominance

Posted on Wednesday, April 28, 2004 @ 05:35:23 pm E.S.T

Long the sole territory of Nintendo's Game Boy line, the handheld gaming market has suddenly become crowded with competition, reports In-Stat/MDR (http://www.instat.com). However, the high-tech market research firm finds that, with three new handheld consoles coming to market, Nintendo is not intending to rest on its laurels, offering new product lines and accessories in an effort to maintain its hold on this market. As a result, Nintendo will enjoy continued success in the market segment that it pioneered with both its Game Boy and its new DS platform.

While the Nokia N-Gage, Tapwave Zodiac and Sony PlayStation Portable (PSP) focus on gaming, they do offer other features, ranging from digital audio players to Bluetooth capability to mobile phone functionality that make them new types of consumer convergence devices. However, according to Brian O'Rourke, a Senior Analyst with In-Stat/MDR's converging markets and technologies group, "Nintendo is the most successful company in the history of handheld games. While all three of these new platforms have higher prices, and are targeting an older demographic than the incumbent Game Boy platform, none will be able to escape Nintendo's long shadow."

In-Stat/MDR has also found that:

  • Sony will also be successful in this market as it should be able to draw on its PlayStation experience and substantial software library to succeed in the handheld market. The PSP is scheduled to make its debut in Japan in the fourth quarter of 2004.
  • Nokia, though it may struggle at times, has initially shown the resources and determination to succeed in this market. Nokia will face substantial challenges in establishing the platform and assuring the availability of sufficient software to entice consumer interest.
  • A start-up company founded by ex-Palm executives, Tapwave may be the odd man out, as it has difficulty competing with the heavyweights in this market. Tapwave has the most difficult task of the three competitors in establishing its platform. It is currently available only on the web and does not have the deep pockets of its competitors. As a result, it will be challenged in attracting third-party publishers to develop game software, the lifeblood of any game platform.
  • The report, "Emerging Handheld Game Platforms: It's Not Just Game Boy Anymore" (#IN0401151ID), includes in-depth analysis and forecasts for the emerging handheld platforms, as well as for Nintendo's platforms. Shipment and revenue forecasts through 2008 are provided for the Nokia N-Gage, Sony PSP, Tapwave Zodiac, Nintendo Game Boy Advance SP, next-generation Nintendo Game Boy, and the Nintendo DS. Analysis of mobile gaming markets are also provided. Results from In-Stat/MDR's technology panel survey on emerging handheld platforms are provided as well. About In-Stat/MDR

    In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end-users.

    In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (http://www.reedelsevier.com), a world-leading publisher and information provider. With over 38,000 employees worldwide, Reed Elsevier operates in the science & medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.

    Posted By: Jay Singh - 117 Reads


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