In recent years, smartphones have become portable gaming devices in their own right, and have massive catalogs of games available that would tempt a casual gamer.
Nintendo's latest DS iteration, the 3DS, has failed to get anywhere near as much attention as previous releases in the line have. While total Nintendo DS sales top a staggering 150 million units worldwide, the Nintendo 3DS has only sold 4.32 million units worldwide since launch.
To prop up its offerings for the holiday season, Nintendo has slashed the price of the 3DS handheld and is pushing out some new software titles, including 3D versions of its Super Mario franchise. In the United States, Nintendo is also offering on-demand service of movies and TV shows on the 3DS and Wii console.
Still, Nintendo will have to put up with more competition as Sony preps the PlayStation Vita for a December 17 launch in Japan, with the U.S. and Europe following early next year.
Nintendo reports its fiscal fist half earnings on Thursday.