Timely analyst thought pieces on issues pertaining to digital media, home networks, and consumer electronics.

Nintendo DS Finds an SD Slot
Author: Michael Wolf, Research Director, Digital Home
Mon, 6 Oct 2008 17:33:35 EDT

While at first it may look like Nintendo continuing to milk its DS platform with another re-spin of its nearly 5 year old portable gaming device, the gaming company's new DSi is a more substantial change than when they put out the DS two years ago Sure, the built-in camera opens up some intriguing possibilities, especially given the creativity Nintendo and its game partners have shown with the DS, but more interesting is the SD slot. By putting an SD slot into the DSi, the company is opening up to potentially compete with PMPs like the iPod by allowing consumers to playback their own media.  While this does nothing for the over 70 million DS owners out there today, it does give some additional life to what is becoming a fairly long-in-the-tooth platform.  I don't doubt that this move was in part due to the strong push into the portable gaming space by Apple with the iPhone and Touch, and I have my suspicions that most consumers who really want to watch portable movies and listen to music will likely continue to use Apple platforms or their mobile phone. Still, give credit to Nintendo for trying.    

I would be surprised if this isn't the last attempt by Nintendo to milk the DS before they launch a new platform. The DS has been a huge home run for Nintendo, but I think Apple has changed the market completely, and I think if anything scares Nintendo it isn't Sony's next-gen handheld but how many Apple is pushing through its app store. I would expect that given the big bump in R&D by Nintendo this year,  we can expect something announced next year. Of course, not all their research on next-gen platforms is about handhelds, as they also are on track to push the Wii 2 out in 2011.

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