I've always believed that a "software meritocracy" ... a market with entry to all and rewards to winners ... would create a massive wave of game development ... and the iPhone App Store has proved this true.
Meanwhile Nintendo has been having some problems. The 3DS has not sold as well as expected, even after Nintendo discounted the device (something they had not done for such a new item in quite some time ... maybe Virtual Boy?). The Wii's appeal has wained and the prospects for the next generation hardware are uncertian.
The result:
The last six months may have been much worse for Nintendo than the company has previously admitted. According to Japan's Nihon Keizai Shimbun--as related by Reuters, Nintendo will show a fiscal first-half loss of 100 billion yen ($1.3 billion) when it announces its earnings tomorrow.
At the same time there's a real hunger for Nintendo IP on iOS and other devices. An example would be "Duck Hunt AR" which was an augemented reality version of the classic "Duck Hunt" game. The app has already been pulled from the store, probably becuse of copyright issues.
Video demo here: http://www.youtube.com/watch?v=vgIhNIb1L5E
There is no doubt that Nintendo has created some of the greatest games in video game history and I for one, know they would be blockbusters on the iPhone and similar devices.
So, will Nintendo go the way of Sega and become a game publisher? Well unless some major changes occur, that seems to be a good probability.
Announcements
Nintendo Games on iOS/Android? Not IF but WHEN.
Nintendo's loss of $1.3B in six months and the dismal reception for the 3DS are an echo of Sega's history. Nintendo may become a software company because of this.