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Nintendo reports strong DS sales

by Simon Burns

04 Jan 2006

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Nintendo is facing fierce competition from Sony and Microsoft

Nintendo has reported strong sales of its Nintendo DS handheld gaming platform as it attempts to keep its head above water in the face of fierce competition from Sony and Microsoft.

The DS has sold over five million units in Japan since its launch a year ago, according to Nintendo. Sales in the US and Canada were lower in proportion to the market size, at about four million units, and appear to have tailed off since the launch.

Nintendo recently reported a 21 per cent fall in net income for the six months from March 2005, and a six per cent fall in sales revenue.

These figures compare to reported North American sales of the Nintendo DS's main rival, Sony's PlayStation Portable, of 2.7 million between its launch in March and the beginning of December. 

Nintendo claims that its two handheld gaming products, the DS and the older Gameboy Advance, which sold 4.6 million in North America, hold 78 per cent of the North American gaming market.

The DS sold strongly at the time of its launch, with over one million in the first month in the US alone.

Although DS sales have fallen sharply since then, popular game sales appear to be holding up well. Nintendo claims to have sold 1.5 million units of the Nintendogs game in the US since August.

The company hopes to keep sales buoyant with promotional campaigns like free Wi-Fi access for Nintendo DS users at 6,000 branches of McDonald's across the US.

Nintendo tends to focus on simpler, more friendly games with a shallow learning curve, in contrast to the darker, more complex offerings which dominate sales on other gaming platforms in the West.

These are traditionally more popular in the company's home market of Japan, although they have been predicted to appeal to untapped groups, such as women, elsewhere.

Nintendo president Satoru Iwata said last month that video games have become "overly sophisticated, turning off many users".

The company is gearing up for the release of its next-generation full-sized gaming console, the Revolution, in the face of strong competition from Microsoft's Xbox 360, and Sony's forthcoming Playstation 3.

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