Replicating calls made by investors after slow 3DS sales in 2011, analysts have come together to claim Nintendo needs to embrace mobile in order to grow its business.

The company posted its first annual loss of $530 million in fiscal year 2012, with neither 3DS nor the now flagging DS able to curb the consumer shift away from traditional handhelds towards smartphones.

In the view of analysts, Nintendo needs to wave the white flag on this particular battle, before making a direct move on enemy territory.

Moving with Mario

"Nintendo has to deal with the change and let Mario games be played on non-Nintendo devices," said CLSA analyst Nanako Imazu in an interview with the New York Times.

"I think it will take at least couple of years to see that."

Commentators are unconvinced Nintendo will ever entertain such a strategy, however, with CEO Satoru Iwata having claimed the company would "would cease to be Nintendo" if it developed for smartphones back in September.

"This is absolutely not under consideration," Iwata said at the time.

"Having a hardware development team in-house is a major strength. It's the duty of management to make use of those strengths."

War is over

Iwata's comments were later backed up by Nintendo of America president Reggie Fils-Aime, who claimed any move to publish Nintendo games on rival hardware would "fly in the face of what we believe in."

Analysts believe the company's reluctance to change stems from the face it's unaware it's already lost its fight against mobile, despite improved 3DS sales following its drastic price cut mid way through 2011.

David Gibson, analyst for Australian bank Macquarie, concluded, "They have been beaten by smartphones and tablets, in particular, for consumers' spending and, more importantly, time."

[source: New York Times]