PSP sales are up and DS sales are down! Black is white! Right is left! Cats and dogs are living together – mass hysteria! The trends have been swapping recently, but why? KBC Securities Japan’s Hiroshi Kamide has a theory:

 "A recessionary environment is negative for the electronic entertainment industry, but we believe the core gaming market to be more resilient than its casual counterpart. Casual gaming growth has been driven over the last three years by the Nintendo DS platform. Demand has peaked in Japan, and we believe is currently peaking overseas. Compounded by a less robust retail environment, we expect to see a decline in the handheld sector...”

If you can’t understand what he is talking about, here is the gist: casual gaming sales are down and core gaming sales are up, and this is a trend that will likely continue. Sales of systems like the Nintendo DS have hit a peak, and he thinks that this isn’t a temporary thing. I really don’t agree, and I think there is likely a few other reasons for the decline.

My guess is because everyone in Japan already owns a Nintendo DS. While it would appear that the sales are take a swan dive compared to the soaring PSP sales, game releases should be taken into account. In the past few weeks, Japan has seen Crisis Core and the newest Monster Hunter, both games that sell like hotcakes in the country. Wait until Dragon Quest IX comes out on the DS and you will see the Japanese buying backup DS Lites. That, or a new color option, that would spike sales through the roof. Damn the Japanese are styling.

 

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