Nintendo, Sony Handhelds Lead U.S. Game Sales 4.9% but are starting to face competition

“The portable hardware category contributed the most to the decline in hardware sales for the month,” NPD analyst Anita Frazier said in the statement. Nintendo DS maintained its position as the market’s best-selling machine, Frazier said.

Portable game players are facing increasing competition from Apple Inc.’s iPhone, iPad and iPod Touch, as consumers look to devices that connect to the Internet and allow downloads of music, video and applications. Nintendo is introducing a new version of the DS, equipped with three cameras, a wireless connection and a screen that displays 3-D images without the use of specialized glasses.

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