It seems like everyone has a smartphone. You can probably think of at least a handful of people who do not. But, how many people do you know who own a Nintendo 3DS or Sony PlayStation Vita? You can probably think of a few, but chances are, it?s fewer than those who own a smartphone. Oddly enough, it?s not that surprising. As of December 2012, Nintendo had sold just fewer than 30 million 3DS?s, while Sony sold around 2.5 million units of their handheld Vita. Compare those numbers to smartphone sales, which are on track to surpass 900 million this year.
Smartphones a Threat to Sony and Nintendo
Mobile Gaming: What do Consumers Prefer?
Of course, the comparison isn?t exactly fair, since there are significantly more smartphone manufacturers than handheld gaming system manufacturers; plus the phone market is flooded with devices (not only that, but devices that vary wildly in terms of specifications). People are clearly willing to purchase a phone over a game system, but since the phone does have more capability than a 3DS or a Vita, it?s a more reasonable purchase. People need to communicate more than they need to play a game. Well, most people.
However, mobile gaming is making huge strides. Simple $0.99 cent games are selling millions of downloads, while $30 to $50 titles are lagging behind. It may be coming down to a financial decision. Why have a phone and a 3DS? As far as costs are concerned, smartphone ownership is certainly not less expensive than owning a gaming system, but the costs can be comparable, depending on the type of user. Higher end smartphones, subsidized and not, can cost more than these handheld gaming systems, and there?s a monthly bill. Mid-range phones cost roughly the same (in the $200 range, but prices are highly competitive). Since most carriers require a data plan with their smartphones, that equals a higher bill. Some lower plans, mostly prepaid plans, can be as low as $30, but it can easily spiral out of control, reaching $50, $90, or much, much more. It?s highly variable. The cost of handheld gaming on the other hand, is much more constant. Sure, there are price drops and sales, but for the most part the prices of the devices remains steady on a year to year basis.
More Features and Less Content
So, it seems consumers are attracted to more features and less concerned about content, particularly game content. Why spend $40 when you can spend $0.99? To the average person, who isn?t particularly savvy in the realm of game purchasing, a $0.99 cent game sounds like a steal, and it usually is? for the developer. Many gamers consider smartphone gaming to be superfluous and lacking in deep, rich content and, for the most part, this is true. There are ?full experience? games on the mobile platform, but compared to what the 3DS and Vita offer (not to mention these system?s predecessors, the DS and the PSP), well, there really isn?t a comparison (even more so when it comes to control?touchscreen and gyro control is, quite frankly, a tortuous experience. I?ll take control pads and buttons, thank you very much).
You?re Missing Out!
Because of this, people who purchase these cheap games for their smartphone are missing out on many great gaming experiences, but it might not really matter. Sales of the 3DS and Vita haven?t kept pace with their predecessors, which had the advantage of existing in a time before smartphones entered mainstream usage, especially among the gaming set. There is undeniable erosion from those markets and it?s likely to continue to erode unless Nintendo and Sony can offer products that are worth the additional investment or lower the cost of entry into the handheld gaming landscape, both on hardware and software, to maintain the competitive edge, which they?re clearly losing.
Bilinda Shields
Bilinda Shields is a cellular phone expert who doubles as a freelance writer. She contributes to many sites, and she offers sound advice about how to sell cell phones. When she's not writing, Bilinda is likely skydiving or taking care of her three corgis.
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