Analyst says DSi will not increase the audience significantly

Worked up about the new DSi? It seems impressions of Nintendo’s new hardware vary widely, but analysts have already begun to assess the impact that the DSi could have on the consumer, and some of them aren’t feeling too positive about it.

UBS Investment Research analyst Ben Schachter commented on Nintendo’s proud new announcement:

“The new functions to be added to the DSi are no more than minor changes, and as such are unlikely to expand the NDS user base, in our view,” advised Schacther. “Demand is likely to centre on replacement. Additional functions may extend the software line-up but not by enough to further boost consumer spending. Body size will be smaller, but not enough to change convenience dramatically.” 

Schachter also notes that the DSi does not address the issue of the hardware’s microprocessor unit, but this could be good news rather than bad for gamers hoping for a stronger handheld, as he advises that a full model change would be required in the next 2-3 years to keep up with current demands for capacity.

Nintendo seems determined to continue to present products that are behind the curve when it comes to cutting edge hardware, yet still seem to be tremendously successful anyway. I have no problem with this strategy, but I have to admit I would prefer to see the next incarnation of the handheld rather than a souped up version with 2 cameras. What are your thoughts on it?

[Via Gamespot]

Colette Bennett