JUNE 21, 2010 • Nintendo Co. Ltd. President Satoru Iwata said production costs for Nintendo 3DS games will be comparable to making a game for the Wii. The premium over existing DS title development comes from the higher cost of asset creation for the 3DS graphic chip.

Impact: The 3DS is definitely looking like a product that will be a hit.  The problem with Nintendo portable platforms, and portable platforms in general is that it is hard for third-party developers to make money by delivering games.  With games for platforms like the iPhone the issue is more about low software pricing and an overabundance of products competing for consumer attention. Games for the Nintendo platforms can command a premium over games for the iPhone, but that premium probably means having software priced similar to traditional prices for DS games ($25-35).  Given higher development costs it means less margin for third party publishers.  So a win for Nintendo does not necessarily mean a win for much of the development community.