Takashi Oka, an analyst at UFJ Tsubasa Securities Co. in Tokyo, said Nintendo will likely hold up against the threat from Sony's offerings because of its ability to come up with good game software. Sony's PlayStation Portable, nicknamed PSP, will also probably be mostly used to watch video instead of playing games, he said.
"Nintendo's power in creating game software is still going strong," Oka said. "I don't consider the PSP as a game machine so its arrival won't affect Nintendo."