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Nintendo loses sales chief in face of iPod effect

updated 11:35 pm EDT, Mon September 20, 2010

Nintendo's Dunaway leaves as DS, Wii sales crash

Nintendo today said its executive VP of sales and marketing Cammie Dunaway was leaving the company in a possible sign of a shakeup following its struggling game business and competition with Apple. The veteran will exit as of October 1 and plans to take a position outside of the game industry. Nintendo hasn't named an immediate successor.

Dunaway has been an instrumental part of Nintendo's recent successes and took over from now US president Reggie Fils-Aime in November 2007, just as the Wii was beginning to ramp up in earnest and the DS was also relatively unchallenged.

Her departure carries significant timing as it comes while the company is facing a rapid decline in interest. In August, Microsoft's Xbox 360 beat Nintendo for the second consecutive month in a feat almost unseen since the DS and Wii became available. Nintendo's sales have been dropping this year; the DS was especially hard-hit as its sales have almost dropped by half from year to year. It has tried to fuel sales by bundling the Wii with more features but hasn't had much success. The DS may not see significant recovery until the 3DS launches in the fall.

Publicly, Nintendo has been hesitant to pin the decline on a particular cause, but it's widely believed the company views Apple as a threat and has been suffering the most from competition with the iPod touch and iPhone. Apple has been drawing revenue share away from both the DS and Sony's PSP and, according to Apple, is larger in terms of device volume than the DS and PSP combined. The iPod has the advantage of an Internet-only game sales model with much lower prices as well as more advanced hardware and stronger media support. [image via Wired]




by MacNN Staff

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Comments

  1. juraiprince

    Joined: Dec 1969

    +3

    Another one...

    ...bites the dust! Geez, they are dropping like flies! That d@!$ iPhone/iPad! Cutting into our pie again!

  1. iphonerulez

    Joined: Dec 1969

    +3

    How is Nintendo in competition with the Touch?

    The iPod Touch is a music player, a net browsing device, a video player, eBook reader, game player, video recorder, run lots of apps, etc. It's not like Apple ever intended to have the Touch in direct competition with the various DS gaming devices. I'm sure the Touch is so popular because it can do so many different things. The DS is pretty much limited to game playing.

    So now there's the iPad effect and iPod Touch effect. It seems like a very powerful force indeed.

  1. JeffHarris

    Joined: Dec 1969

    +9

    End of an Era

    There's no room for a One-Trick-Pony gaming toy any more.
    The iPod touch and iPad are limited only by software.

  1. facebook_Justin

    Via Facebook

    Joined: Sep 2010

    +2

    comment title

    Perhaps if Nintendo didn't make such useless weak c*** then it wouldn't have to worry. Nintendo has been keeping us behind in portable entertainment for years, in fact if it weren't for the PSP we'd probably still be expecting GameBoy quality games on the go. Now the iPhone and iPod come out and whip them both. Sony is trying to keep up, Nintendo is still on the same old c***. Most people, except for the 10 year olds that get excited over two screens, which is probably 70% of Nintendo's market, don't want a handheld with less power then a Nintendo 64 and dual screens, they want one big screen and good graphics, for GOOD gaming.

  1. Telekinesis

    Joined: Dec 1969

    -4

    Bait the hook.

    I read multiple gaming sites all the time and this is the first site that a reference to her departure is correlated to the ipod based on pure speculation, this is also a website with what I see a rampant Apple fanboy problem; coincidence?

  1. SockRolid

    Joined: Dec 1969

    +7

    Almost unfair, but not quite.

    Jeez. Nintendo fires their sales chief because she couldn't move junky old-school hardware? They should fire their CEO for not having vision. Like Nokia did. And LG too.

  1. coffeetime

    Joined: Dec 1969

    +3

    The comfort zone

    I have to give Apple credit for daringly getting into phone market. Lots of other companies are afraid. Especially Nintendo has been in the gaming market for so long and that's all they know. Never mind having them tap into multimedia business like iPad and iPod Touch. Now people got a taste of iOS devices and consumers like it. And the tide has turned.

  1. joecab

    Joined: Dec 1969

    +4

    I am torn

    I love Nintendo's in-house games but love my iPhone games too. I hope Nintendo is flexible enough to find a way to change their business. They may need to begin by cutting their markup on hardware handhelds.

  1. JeffHarris

    Joined: Dec 1969

    +4

    Wake up Nintendo

    If Nintendo were smart, they'd rewrite their biggest selling games for iOS.

    It's certainly doable. Plus they may learn a thing or two in the process.
    AND make a few bucks!

  1. Grendelmon

    Joined: Dec 1969

    +7

    Great Journalism

    So, according to the title, Dunaway's departure is directly related to competition from the iPod, yet there is absolutely no reference from anyone or any company that this is the case.

    Fantastic writing. There is a reason that Electronista never cites the authors of it's articles. Mediocrity deems it unncessary.

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