Analyst claims DS is past its peak

All good things must come to an end, as they say, and though we would never claim that the Nintendo DS is on a downward spiral towards hardware death, there are indications that it may be starting to make its way (slowly) back down Casual Mountain to graze in the lush green valleys alongside the various iterations of the Game Boy.

Analyst Hiroshi Kamide from KBC Securities Japan has recently had some interesting things to say on the topic, reports Kotaku:

"Casual gaming growth has been the primary driver for the industry over the last three years, the key player being the Nintendo DS. We believe DS hardware demand has now peaked globally. A downturn in software demand is likely to follow, as casual gamers are 'happy with their lot' and do not need to consume more. "We feel that the same predicament awaits the Wii console with its similar market expansion angle. Titles such as Brain Training and Wii Fit do not act as 'gateway drugs' to turn non-traditional gamers to core repeat users. We feel this is a structural industry issue that cannot be easily changed."

Though only the words of one individual, it's not unlikely that casual gaming, in the console realm at least, may not go the distance. And if casual gaming is not going to continue to be an industry driver for consoles, where does that leave Nintendo?

Though the DS has clearly got a few lives left yet, Nintendo's big wigs are surely doing some chin stroking over where to take the company's handheld hardware next. Could a downturn in casual gaming in the console market result in Nintendo finally entering the mobile space, where casual gaming is still in good health (and likely to remain so for a considerable period)?

Well, it's a long stretch. And it will in part depend on what impact the iPhone has in the gaming market. Either way, we shouldn't expect the DS to have the easy ride this year and the next that it did in 2007.