Why Did Nintendo Discontinue the DS?

The Nintendo DS line of handheld gaming systems, comprising the original 2004 DS, DS Lite, DSi, XL, 2DS, 3DS and New 3DS models, was finally discontinued worldwide by Nintendo in 2020. This brought an end to over 15 years of the dual-screen, foldable, touchscreen-enabled handhelds that introduced groundbreaking innovations and sold over 154 million units.

As a lifelong Nintendo fan and industry watcher, the DS discontinuation was a bittersweet moment. The runaway success of DS and its vast game library represent a high-point for portable gaming. However, from a business perspective, it made total sense for Nintendo to shift focus to its new hybrid console, the Nintendo Switch. Let‘s dive into the reasoning behind the DS being discontinued now and what it meant for Nintendo‘s past, present and future.

Declining Sales Forced Nintendo‘s Hand

First and foremost, declining consumer demand ultimately leads to any product being discontinued. DS sales were on a downward trajectory long before 2020. Here are some key figures from Nintendo‘s financial reports that capture the declining DS demand:

• Nintendo sold 154 million DS units total worldwide between 2004 and 2020. However, annual sales peaked way back in 2009 at 30.3 million units. By 2016, annual sales were down to just 6.4 million DS units.

• Nintendo DS software sales followed a similar curve, with 2009 being the peak at 367 million game units sold. By 2016, game sales plummeted to 31 million units.

• Between 2013 and 2016, 3DS hardware sales declined 37%. Even mega-popular franchises like Pokemon saw sales drops over this period on DS/3DS.

Clearly, after over a decade on the market, Nintendo‘s once red-hot DS models were rapidly losing consumer interest leading up to discontinuation.

Mobile Gaming‘s Rise Eroded the Handheld Market

Another key factor in the decline of dedicated handhelds like DS is the astronomical rise of mobile gaming on smartphones and tablets.

According to Newzoo, the global mobile games market grew from just $13B in 2012 to over $86B in 2020. Casual gamers switched en masse to playing free or inexpensive game apps on their phones instead of buying costly game cartridges.

So while 150+ million users still owned DS models in 2020, they were not engaging with them nearly as much as during peak years. The installed base stayed large, but active usage shrunk considerably thanks to readily available mobile gaming.

DS Sales Still Strong in Absolute Terms

It‘s important to note however that while DS hardware and software sales declined significantly from their dizzying peak, the system still maintained decent sales in absolute terms all the way up to discontinuation.

For example, 2016 saw 6.4 million systems and 31 million games sold. And even 2020 saw over 800,000 units and 7 million games sold just for the 3DS alone. Those are very healthy numbers for a "declining" system.

However, Nintendo is a company very focused on momentum, growth, and maximizing revenue. To keep investng resources into a flat or declining system was not a wise choice long-term, even if short-term revenue remained solid. Keeping the DS line going just didn‘t align with Nintendo‘s business strategy.

Nintendo Shifted Focus to Switch

With the successful launch of the new Nintendo Switch console in 2017, discontinued the DS line became an easy choice. The Switch offered a technical leap over the aging 3DS hardware (now 6 years old itself). More importantly, as a hybrid portable/home console, the Switch essentially promised to be the best of both worlds and render dedicated portable systems redundant.

Additionally, Nintendo was keen to shift development resources towards supporting Switch rather than splitting focus across Switch and 3DS. This allowed for a singular strategic focus on establishing the Switch as Nintendo‘s platform of the future.

We can see just how rapidly the Switch replaced DS/3DS sales. By March 2021, Switch lifetime sales hit 80 million units worldwide, while the final DS figure was 154 million. In just 4 years, Switch has already sold over half as many systems as DS did over 15+ years and 7 different models.

DS Sales Went as High as They Could Go

Stepping back, it‘s fair to say the DS line simply ran its course and went as high as reasonably possible. Selling over 150 million systems and nearly a billion game copies over a decade and a half is a remarkably successful product life, practically unheard of in gaming.

Even with Nintendo‘s masterful software design and marketing, they likely took the DS business model as far as possible. There just weren‘t substantial untapped markets left to sustain further growth. DS tapped every major gaming segment from kids to adults, casual to hardcore.

Much like the insanely popular PS2 before it, DS was bound to hit market saturation and peak sales at some point. That point occurred around 2009-2010, paving the way for switchover to Nintendo‘s next generation of hardware.

DS Legacy – A Truly Revolutionary System

As a gamer who inhabited the DS era in full, it is still incredible to consider how forward-thinking and revolutionary the 2004 original DS was. The sizable two screens, the lower being a touchscreen, feel obvious now. But back then, it blew people‘s minds and reshaped gaming UI and input norms.

No list of DS innovations and features would be complete without mentioning:

• Dual Screen layout with lower touchscreen
• Microphone input
• Wireless local multiplayer
• Touchscreen gameplay innovation
• DS Download Play
• Iterative models like Lite, iXL, 2DS at various price points to expand the market
• Wide range of software from Nintendogs to Brain Age that opened gaming to new audiences beyond traditional gamers

DS pioneered all this between 2004-2006. And it successfully rode this wave to become the 2nd highest selling game system ever.

DS Leaves a Great Legacy… But its Time Had Come

In conclusion, as a longtime Nintendo fan, the official end of the DS line is genuinely bittersweet news. That hardware and game catalogue represent some of my personal gaming highlights. At the same time, it‘s clear the DS brand had simply run a virtuous cycle over 10+ years and reached a natural conclusion.

All good things must come to end. We should celebrate the special moments DS gave us and now happily shift our gaze to Switch, mobile and whatever brilliant handheld or hybrid system Nintendo has cooking up for the future!

What are your favorite DS memories? Did you expect Nintendo to discontinue it in 2020 or keep it going longer? Share your thoughts in the comments below!