Impact: The hard fact is that Wii U hardware sales continue to underwhelm, and the much healthier 3DS platform is generating tepid unit growth. In a different era, the gamemaker could have relied on a more sizable handheld growth rate to bail out an under-performing home console. Not today when smartphones are so ubiquitous worldwide. No wonder that Nintendo is looking for a whole new platform business to pull itself out of the financial doldrums. This Quality of Life initiative is not surprising given the firm’s prior success with mainstream consumers via Wii Fit and Wii Sports. Yet details are sketchy at best and it is difficult to weigh what the chances are for success. Neither do we know whether Nintendo is looking at a wearable device, or something more conventional. If it cannot reach new mainstream consumers in Western markets with its current video game line-up, Nintendo hopes it can rally support in new markets with special devices catered to them. It is telling, however, that Nintendo has been forced to look outside the traditional games business for resuscitation. Whether it is from this new healthy living direction, consoles for emerging markets or licensing its IP, the admission is short-term robust growth is not coming from Nintendo’s regular video game business. Longer term, DFC would like to think that the company could return in a future Western console cycle with a system that pushed the edges as when Nintendo drove the 3D era on consoles with the N64’s Super Mario 64. If Nintendo’s primary console business is forced to live off of core gamers, as seems apparent in the future, then this seems to be the best option despite the substantial R&D costs.