Hhahahahaha you seriously think a few dollar app with a couple thousand tops in development is even comparable to a real video game? Over 2 million sold already, which blows iphone or any smartphone companies sales out of the water. Another thing, people who play games want BUTTONS, not touch screens. Touch screens are awful for playing games. The only games that will have any success in the phone market are casual games. Anyone who wants to play a real game, expecially the kids, will want a real gaming system. Period
What you don't realize is that you are making the dumbest statement in the world. You are obviously not well versed in the history of Nintendo and the handheld market, as well as the history of technology in general. First off, smartphones are not a direct competitor to the 3DS... those who think so are quite jaded and perhaps biased. You are completely unaware of Nintendo's market because you are obviously not a gamer. You must not realize that the Pokemon franchise alone dwarfs the entire iOS game library in revenue. Underestimating Nintendo is what analysts and jaded people like you have done for over 25 years. Nintendo has proven to be one of the most well managed and profitable companies in the world, with an unmatched arsenal of franchises.
As for smartphone technology surpassing the 3DS, this does not even matter. Consoles versus PCs is like dedicated handhelds vs smartphones. Why do 3DS games look better than iPhone games when the 3DS does not have comparable specs? Dedicated hardware. Low processor overhead. Little to no bottlenecks for graphics throughput. That is why a lower cost console/handheld can compete with their multitasking peers and developers don't have to worry about different SKU specifications and can focus on maximizing the hardware for 5+ years.
East obviously does not have young children. Even when the economy is bad, parents still buy for their children. I saw a commercial today for the 3DS and it brought a smile to my face and soon will put money in my pocket.
"Even when the economy is bad, parents still buy for their children." Agree completely. Nothing is worse that being at home looking for work and your kid is going nuts from boredom. Can't go to the park if you are waiting for a phone call, and you sure cannot hand your cell phone to your kids.
The sales history of the Wii should have told you that performance is secondary when it comes to gaming. Listening to gamers rather than analysts has always paid off when it comes to investing in NTDOY. Show a gamer a 3DS and you will hear :"I want one!".
And yes, the ADR's pay a dividend just like the Tokyo listed shares.