The video game industry has been less impacted by the economic slowdown and has remained fairly stable despite a large consumer spending decline. Nintendo has said it intends to continue executing on its strategy of expanding its gaming audience by broadening the definition of video games (e.g., Wii Fit) and has supported the development of a wider variety of games from both Nintendo and third-party publishers. The strategy has boosted sales of Nintendo's DS and Wii hardware as well as software.

Nintendo has shipped more than 100 million DS units since launching the franchise in late 2004. However, for fiscal year 2010, the company sees net sales remaining at current levels. The company is challenged not only by console makers such as Sony and Microsoft, but also by smartphone manufacturers, in particular, Apple. For example, Capcom Co. Ltd., which produces the popular "Resident Evil" games, plans to offer more than 10 titles for the iPhone in the coming months, underlining software creators' growing support for the Apple machine.