Analyst: Nintendo has learned “expensive lessons” from 3DS

“Expensive lessons were learned” from the Nintendo 3DS, according to Jesse Divnich, Vice President of Insights and Analysis for Electronic Entertainment Design and Research (EEDAR).

Within a more competitive market, the handheld has fought to gain consumer traction, and Divnich believes reiterating hardware with the Nintendo 3DS XL is an “excellent strategy” going on past trends.

“The handheld console market is shifting and there is no doubt that competition from mobile and tablet games are stealing playtime and consumer wallet share,” Divnich explained to VG247. “It’s a tough environment and I have no doubt that expensive lessons were learned.

“Nintendo has always turned to changing form factors, both physically and aesthetically, as a strategy to increase both visibility and purchase intent. Nintendo has sold over 150 million Nintendo DS and I doubt that was to 150 million unique consumers.

“Our data shows that well over 20% of Nintendo DS purchases were to multiple users either replacing or upgrading their DS. It’s an excellent strategy and one that can realise incremental revenue from their loyal install base.”

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After starting out with a Yellow Game Boy and a copy of Donkey Kong Land, Alex once hid in his room to play The Legend of Zelda: Ocarina of Time one Christmas. Now he shares his thoughts on Nintendo Insider, keeping track of everything to do with Nintendo.

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