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October 15, 2009 by RawmeatCowboy Filed Under: DS, Nintendo in general

"I think the iPod touch is the most dangerous thing that ever happened to the publishers, ever, and they don’t get it for two reasons. It’s going to be a different audience, it’s going to be young kids because iPod touch is $199 this Christmas, it’ll be $149 next year, $129. When its $99 every little nine year old kid is going to have one of those instead of a DS or a PSP, and if you train kids that this is the game that you want to play… How about Tetris? Why would you pay $20 for Tetris when you can get it for $6.99 or $3.99 on iPod touch? It’s a serious threat to pricing. And once people start to look at this as a substitute for the DS for smaller kids, for 12 and unders, then you’re going to train a whole generation of 12 and unders that this is a perfectly acceptable gaming experience at that low price point. I think that we all started playing arcade games because we’re a little bit older, but all the 20 year old kids playing games now started playing on the GBA and you work your way up, and if you start with an iPod touch I’m not sure they do work their way up. I think Apple intends to capture that audience and keep them. It’s dangerous and I’m not a big fan of it from a publisher perspective.” - Wedbush analyst, Michael Pachter

I have to admit that the pricing differences between the platform really bugs me. The same game on the App Store will cost me $10, instead of $30 on the DS. Now don't get me wrong, I much prefer the controls of the DS...but are they worth an extra $20?

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User avatar
October 15, 2009 at 2:34 pm
You can't do any serious gaming on an iPhone. It's only good for quick arcade games. I much preffer gameing on my ds to my iPod.
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Skireny
October 15, 2009 at 2:37 pm
*pulls lever, arrow spins tinny grindy voice*

"The Pachter Says: Quack Quack!"
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paulrenzo
October 15, 2009 at 3:05 pm
But most "enthusiast" gamers (i.e not the ones who mainly play minigames) prefer their type of games, and these games are mostly found in the traditional gaming platforms.

Admittedly though, this will collide with the blue ocean strategy of Nintendo. Therefore, this analysis may not be very applicable to Sony/MS, but it will be for Nintendo, who also rely on the minigame audience for profit. Then again, one can argue that they now have DSiWare, but the question is: how many people own a DSi?
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October 15, 2009 at 3:08 pm
This is the first thing I read from Pachter that warrants not simply scoffing at it and proceeding to forget it right away again.

I'm actually amazed he didn't just raise the point of pricing, but opened the whole can there. Consider me honestly surprised.
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October 15, 2009 at 3:14 pm
Huh? I don't know many little kids with even el cheapo MP3 players, let alone iPod's. I have seen a ton of kids with DS' though in public. The only thing I kinda agree with is the pricing issue. That's the only thing the iPod Touch/iPhone have an advantage with, but most of the games are not very long and/or even complicated, so.
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October 15, 2009 at 3:34 pm
Silly Pachter! The iPod Classic STILL sells for $249.99, and the Nano for $149.99! The price on the Touch, their current hot model, won't be dropping any time soon.
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October 15, 2009 at 3:35 pm
Really now, how many games will be available in both DS and iPod Touch / iPhone? Not many, and developers know that their $20 / $30 DS game better have extra features to 'compete' against the smaller apps.

That's regarding the few games that will exist on both platforms, though; the DS will continue to have tons and tons of exclusives not available on iPods / iPhones, let alone any other system. No worries, at all.
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internet
October 15, 2009 at 3:47 pm
well duh
will it erase the ds? i'm not sure . the psp is a non factor , a colossal failure. Anyway cellphone games , texting, iphone, are real threat .

I've seen more people playing ds in public than iphone or cellphone gaming. Non gaming apps on phone are way more spread
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October 15, 2009 at 4:44 pm
That's it Pachter, spread the blame onto the iLine products like the industry pays you to do.

I know full well that the mass of sucker gamers being enticed by a fully Digital Age of 'DLC', developer price hikes, no creative artworks [like box arts], multiple patches and server issues, [generally fully PC game machines] is the real threat to gaming [not that many seem to care, or have the brain cells to comprehend it in the first place].
They will see it though, and then it'll be too late.

Then again, the PSP Go is failing, so maybe there's hope yet.
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October 15, 2009 at 5:22 pm
I think the iPod Touch is going to eventually become a threat, if it hasn't already. Aside from the obvious price differences in games for the DS and iPod Touch, the Touch has better graphics plus an accelerometer, plus since recently getting my Touch (that's what I'm using right now to type this message) I've learned that the Touch is better suited for gaming than I gave it credit for prior from my purchase. The virtual analog stick works wonderfully and I actually played a demo for an FPS game called Sandstorm on it that played like you were using dual analogs. Which although may not be better than the DS in controls, it's a heck of a lot better than the PSPs for a game of comparable graphics to a PSP game, if not better.

@Chosenoneknuckles

The only reason the PSP Go is failing is because Sony went about it the completely wrong way. They priced the device too high, eliminated the possibility of using UMDs on the device (or someway to make games you've already purchased in UMD form usable) made the device uncomfortable, and made the screen smaller. I don't know what Sony was thinking when they made the device.
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October 15, 2009 at 7:34 pm
Since Apple is as shrewd as any other corporation, i bet prices will slowly start edging up for titles from the big companies. Sadly, game prices are often based almost entirely on perceived value and whatever the market will bear. Corporate books always get spun to enhance R&D expenses/operating losses and to downplay profits – but if games weren't highly profitable the truth is that no one would be making them. That skewed accounting has become so standard that it has begun masquerading as truth. If every software company were to cap ALL salaries at $150k (with no sleazy compensation packages or multi-millon dollar executive salaries) and if companies started asking "How much do we need to charge to pay all our bills and make a fair profit?" instead of "What's the highest amount we can get away with?" i think we'd see game prices dropping drastically across the board. We'd also see more original titles and less money being dedicated to the milking of franchises. If Apple's app store can help the market to shift a bit more in favor of passionate independent developers, I think that would be a good thing. Excessive greed and inflated pricing stem largely from the corporate structure. Once you have shareholders calling the shots, ethics and integrity go right out the window.
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October 15, 2009 at 8:11 pm
It's not a problem now, but he's right. Once parents buy an Ipod or touch to kids now or in a few years, the future generations will have a lower standards of gaming, and specifically what pricing is acceptable.

You already see this on the Wii. Games that are 29 or less tend to sell better then 39+ games regardless of quality.

As nice as it is to have cheap games, nothing good can come out of this, even for apple.
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October 15, 2009 at 9:22 pm
He does have some very valid points, especially about pricing.

I love playing Peggle and a few other games on my iPhone, but I still prefer to do actual gaming on my DS.

The DS just offers richer and deeper experiences with better control options and features.
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