In case you’re not keeping up regarding Nintendo, things aren’t looking good. From dominating the handheld space a few short years ago, it’s now found itself in the position of finding its older handheld (the DS) outselling its newer model (the 3DS) by nearly two-to-one, and the new console having its price slashed, in an attempt to boost poor sales across the entire range. The company’s CEO has taken a 50 per cent pay cut, and Nintendo doesn’t seem to have any big answers to Apple’s iOS and even Sony, matching Apple in making genuinely multifunctional devices.

To my mind, Nintendo has the following options:

  • Dig in. Nintendo has said it believes that dedicated gaming units are still the way forward. It could produce a follow-up to the 3DS (perhaps the Game Boy 2, to leverage that still-loved brand), but this would be a high-risk strategy. It’s increasingly common for kids to be armed with iPods, and once they have one, dedicated units look limited by comparison (especially those largely utilising physical media).
  • Follow the crowd. Nintendo could fight back against Apple and Sony by nicking their best ideas. Have the next Nintendo console, at the very least, be fantastic online (for browsing, not just multiplayer games), work well as a media player, and have a top-notch games and apps list, which are largely available via download and for a more affordable price than existing Nintendo games. This has less risk in the sense of future-proofing, but Nintendo would have to take great care to differentiate.
  • Do something entirely different. Apple—the company, remember, in part responsible for the Apple Pippin—largely blindsided Nintendo in handheld gaming. Apple didn’t design the iPod as a gaming unit, but it did design iOS devices as something different to what existed at the time. A combination of factors then led to devs and gamers flocking to the platform. Is Nintendo capable of creating something so awe-inspiring, new and innovative (rather than welding a 3D gimmick to an existing console) that it could go for this option? I’d like to think so, because while it’s also high-risk, it offers plenty of rewards if the Japanese giant got it right. And it’s not like Nintendo’s been bereft of new and exciting ideas in the past.

Whichever path Nintendo chooses, I think it’s got one more shot at this, before it finds itself in the same position as Sega around the time of the Dreamcast. If that ever happens, the company ends up with option four, which I’m sure it would never want to do:

  • Be like Sega. Nintendo could give up on hardware entirely and go software-only in the handheld space, either with lucrative exclusive deals with a single platform, or by casting the net wide. Imagine if Super Mario Bros., MarioKart and other famous Nintendo brands were to officially exist for iOS. Angry Birds would be ousted from the number-one spot for good—those birds and pigs would never know what hit them. But this would come at a price—the ability to control the hardware and software, and to innovate when it comes to making new hardware. That said, given how regularly Nintendo recycles its famous IP, this wouldn’t necessarily be a poor option, especially for gamers.