Nintendo has traditionally ignored the iPhone as a competitor, claiming that the DS and iPhone were chasing different markets. Now Nintendo president Satoru Iwata has given in the reality of commerce and started the smack talk.
I do not imagine that iPhone will dominate the Nintendo DS market at once. My impression as the person who has used iPhone is, it is very attractive but, frankly, I did not feel that it was designed to be appreciated by a wide variety of people like how Nintendo has been designing its products.
The DS had an incredible run, and the DSi has shown some impressive initial sales. But with the rise of the smartphone (which obviously includes the iPhone), Nintendo will need to move beyond corporate trash talk and figure out how they'll survive in the mobile gaming marketplace when consumers refuse to carry two devices. You know, a plan that doesn't include going the way of Sega on mobiles.
The company will never have more momentum than they have now. So if anyone could launch a crazy new product and find mass acceptance right now, it's Nintendo. But unfortunately for Nintendo, Apple meets that criteria, too. [Nintendo via Kotaku and image]