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Wednesday, January 12, 2011

Nintendo 3DS: The PSP’s Death Knell

The general consensus among game industry-watchers at E3 is that Nintendo presented the best press conference among the “big three,” leaving Microsoft and Sony in the dust. While Microsoft made waves by giving everyone who attended the company's conference a free new Xbox 360 Slim and Sony got attention with its homegrown character Kevin Butler, the healthy library of new games from the House That Mario Built put Nintendo over the top.

Nintendo also formally presented its new portable gaming console, the 3DS.The 3DS represents the truly major handheld upgrade from Nintendo since the original DS launched back in 2004. In a 12 month period that has been absolutely dominated by 3D news from other areas of the consumer electronics arena, Nintendo is capitalizing on the newest frontier in entertainment, and doing so without a pair of stereoscopic or active-shutter glasses in sight.
So what does all this mean for Sony's PSP and PSPgo? Neither Sony handheld is selling well today, and the 3DS won't help Sony's standing. Sony has recently added Kevin Butler-like flare to its PSP ads but we think this is too little, too late. If Sony wants to remain relevant in the handheld space, the company needs to put the same amount of focus it put on 3D for the PS3 into 3D for the next PSP console. Nintendo has done nearly everything right when it comes to its DS line, from backwards compatibility to camera integration to allowing for downloadable content while maintaining physical cartridges. Even if Sony knocks the PSP2 out of the park, the 3DS will remain a formidable competitor with a head start. Analysts expect the 3DS to launch in the first quarter of 2011, though Nintendo has not announced a date.
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