Nintendo to Merge Handheld and Console Divisions

By Jane McEntegart
published

Rumors say Nintendo is looking to marry its console and handheld divisions.

In the last two years, Nintendo has launched new additions to its console and handheld console lines. The 3DS was released in 2011 while the Wii U launched just last year, and the company's handheld and console businesses have always been pretty independent of each other. However, it seems Nintendo may be looking at consolidating its handheld and console divisions. 

The Verge cites a Japanese language report in Nikkei as saying the company will merge its handheld and console divisions. There's also plans to build a new development facility in Kyoto. This facility is expected to be opened by the end of the year and will be the result of an investment of $340 million. Nintendo hasn't confirmed the news, so the reasoning behind such a decision is not yet clear. While the handheld and console divisions were previously separate, it wasn't a case of the right hand not knowing what the left hand was doing in that major product launches have always been well spaced and never on top of one and other. However, the Wii U comes with a tablet-like controller that is almost definitely a device in and of itself. The Wii U definitely blurs the line between handheld and console, so perhaps Nintendo is hoping to merge the two divisions because they already worked together a lot on the Wii U and its controller.

According to NPD's December numbers, Nintendo is raking in profits with the launch of the Wii U, more so than it did with the launch of the original Wii. After the holiday period, NPD reported that Nintendo's Wii U brought in over $300 million in profits in 41 days, higher than the $270 million that Nintendo brought in from the Wii. On the handheld side, the 3DS continues to perform well, selling 1.25 million units during the last month of 2012, bringing its overall tally to 7.7 million units sold.

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Jane McEntegart
9 Comments Comment from the forums
  • vertigo_2000
    Android powered Nintendo superphone?
    Reply
  • InvalidError
    Considering how much pressure portable consoles are getting from the increasingly ubiquitous smartphone/tablet market and free/sub-$5 games, it isn't too surprising that Nintendo is consolidating its mobile and conventional console efforts to reduce development costs. The days of Nintendo (and other console makers) being able to charge a $15-25 license per sale to 3rd-party developers are quickly waning.
    Reply
  • redgarl
    A nintendo phone could be interesting...
    Reply
  • redgarl
    InvalidErrorConsidering how much pressure portable consoles are getting from the increasingly ubiquitous smartphone/tablet market and free/sub-$5 games, it isn't too surprising that Nintendo is consolidating its mobile and conventional console efforts to reduce development costs. The days of Nintendo (and other console makers) being able to charge a $15-25 license per sale to 3rd-party developers are quickly waning.
    You are wrong, you cannot compare angry birds with a game like Professor Layton, Fire Emblem or even Zelda and Mario. The gaming industry is there to stay and as good as Hotline Miami is, you cannot rely only on gameplay only nowaday. There is a market for AAA games and there will always be demands for being wowed.
    Reply
  • gilgamex
    redgarlYou are wrong, you cannot compare angry birds with a game like Professor Layton, Fire Emblem or even Zelda and Mario. The gaming industry is there to stay and as good as Hotline Miami is, you cannot rely only on gameplay only nowaday. There is a market for AAA games and there will always be demands for being wowed.
    I second this, these are distinctly different markets, and blowout sales reach both worlds whether it'd be minecraft or starcraft II you have a distinct difference in development costs both charging a very different sum of money (Minecraft - $10-20 even less, Starcraft II - $50-60) huge market for both. There is little no pressure other than the elevated risk of making that triple-A title over indie style games. There will always be those willing to shell out the extra amount for a solid/big Nintendo release as much as any other big franchise/game because you know what it means and signifies and that money (usually) is well spent
    Reply
  • belardo
    Coming soon..

    ANGRY TURDS!
    Reply
  • zakaron
    redgarlA nintendo phone could be interesting...Let's just hope you can use actual phone numbers and not those friend codes to call someone.
    Reply
  • neblogai
    vertigo_2000Android powered Nintendo superphone?
    Maybe not an actual phone, but it'd be interesting if Nintendo decided to release playable demo versions of great Wii U games to google play and apple store. Of course, that would bring a risk of clones, but it would also help Nintendo attract buyers wanting to play full versions on Wii U.
    Reply
  • alidan
    redgarlA nintendo phone could be interesting...
    only if its sold as a console with phone capabilities, and not a phone branded nintendo.

    InvalidErrorConsidering how much pressure portable consoles are getting from the increasingly ubiquitous smartphone/tablet market and free/sub-$5 games, it isn't too surprising that Nintendo is consolidating its mobile and conventional console efforts to reduce development costs. The days of Nintendo (and other console makers) being able to charge a $15-25 license per sale to 3rd-party developers are quickly waning.
    the cost is closer to 7-12$
    retail is another one at 12-15$ a game

    redgarlYou are wrong, you cannot compare angry birds with a game like Professor Layton, Fire Emblem or even Zelda and Mario. The gaming industry is there to stay and as good as Hotline Miami is, you cannot rely only on gameplay only nowaday. There is a market for AAA games and there will always be demands for being wowed.
    game prices are over inflated when they arent in an ecosystem that forces them cheaper.

    steam, 10,000,000 is a port of an ios game for 2$ and on steam it costs 5$ and you get no added fucntionality, its just a straight port.

    some games, especially the shovel ware games, are WAY overpriced, if nintendo opens up its platform for % based license fees instead of static, than we may see games get cheaper by allot there. and with many games being reasonable quality on nintendo, i could see them getting a second wind over their competitors and even phones for as far as quality/price is concerned

    Reply