Analyst: 3DS will help Nintendo stave off iPhone

Lazard Capital Markets analyst Colin Sebastian has said in a new report that the Nintendo 3DS system will not only increase unit sales for the DS platform (obviously), it will satisfy demands of consumers now excited about 3D technology, and help differentiate Nintendo's offerings from iPhone software. He notes that cheap iPhone games are cutting into the DS business. "However," he suggests, "with a differentiated 3D display, high quality games, and profitable business model for publishers, we believe the 3DS could help reduce the competitive threat from smartphones."

Wedbush Morgan analyst Michael Pachter, however, doesn't believe 3D on its own is enough — because if that's all it is, Apple will simply copy it. "It seems that if 3D on portable devices was easy," he told CVG, "Apple would have beat them to it. If they truly pioneer a technology, my guess is that Apple will mimic the technology." That's a pretty pessimistic outlook. We're going to have to play a lot of Grand Theft Auto: Chinatown Wars on our touchscreen-based handheld game console to cheer ourselves up after reading that.