According to an article published in TimesOnline, Satoru Iwata, the president of Nintendo has told his executives to regard the battle with Sony as a vicory already won and to treat Apple as the "enemy of the future."

Apparently after profits declined for the first time in 6 years, Nintendo is preparing to aims its development and marketing forces against Apple. That, say analysts, may be premature. Last Christmas, almost twice as many Wii consoles were sold in the US as the PlayStation3. But games developers increasingly see Sony’s machine as having a large enough base of users to justify not making titles for the Nintendo machine.

Sony and Microsoft are both also making forays into family-oriented gaming and the iPhone has emerged as a formidable competitor for Nintendo in the handheld gaming arena once dominated by the DS console. Sources close to the Kyoto-based company describe a mood of concern as the hardware and software divisions race to restore the capacity to “surprise” — a traditional feature of Nintendo games that Mr Iwata holds dear.

The company’s recent strategy has centred on creating devices aimed not just at children and dedicated — generally male — gamers, but at the whole family. Two years ago, the company claimed to have permanently altered the demographics of video games by raising the average age and the gender mix of gamers. Unfortunately, the very people it claimed to have converted — high-school girls and men aged between 30 and 40 — reported that they would rather have an iPhone than a DS in their pockets or handbags.
Although the company ended the 2009 financial year squarely in the black, analysts described Nintendo’s profit slide as a “triple punch”.

Despite selling over 10 million copies of the latest Mario title for the Wii console, the pipeline of new games has stopped delivering the sort of blockbusters that drove console sales to record levels in the first two years after its launch. Nintendo has also suffered from the financial crisis. Households around the world spent most of last year in full belt-tightening mode, and remain cautious about buying games with a relatively short playing-life.

But the most striking decline was in sales of the consoles. Although both the Wii and DS have outsold their Sony and Microsoft counterparts, the lower technology of the Nintendo machines is starting to show. With far less processing power than either the PlayStation3 or Xbox 360, the Wii is suffering. Its sales were 21 per cent down in the year to March 31. Net profits at Nintendo, meanwhile, fell to Y228.64 billion (£1.6 billion) from Y279.09 billion.

From: Rivals are invading its patch, but Nintendo is ready to go to war - Times Online