During the investors conference that took place recently, Mr Miyamoto said that he fears the trend of hand-me-down smartphones which are viewed as a cheap way for children to get involved with video games. As more people upgrade their phones regularly the phones are then passed down to their children. This is something Nintendo will obviously have to compete against.
“It is true that I have a sense of fear in that “hand-me-down smartphones,” as pointed out by another shareholder, are becoming hardware systems on which to play games due to their prices being lower than that of our most inexpensive video game system in our history. However, I do not believe that will completely control the future of video games. Of course, it is important to gain profit in effective ways, but Nintendo always has to take seriously, for example, network security for children. Taking into consideration that more and more children have a good command of these kinds of media, which help these media to spread, the most important task for Nintendo is how to provide new styles of entertainment by using these technologies, and how to make these new kinds of entertainment yield significant sales and profits.”