Nintendo is partnering with Nvidia for their next handheld system, likely called the Nintendo DS 2. Nvidia's Tegra mobile chip architecture is similar to what was used in the original DS and provides a large performance boost over the DS. The DS 2 may include features like a single high resolution touchscreen, internal storage, and integrated health monitoring sensors similar to the Wii Vitality Sensor. By expanding into new areas like digital content and health monitoring, Nintendo aims to create a "blue ocean" and attract new types of non-traditional game consumers, such as older adults focused on health, to the handheld platform.

1. Nintendo DS 2 What we must know about Nintendo next handheld?

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3. Nintendo + Nvidia deal The deal could have been made in 2008 after ATI closed the doors of their handheld division and canned the “Xenos Mobile”. NintendoDS general architecture and Tegra general architecture are very similar, Tegra seems an evolution of the DS chipset. The small power consumption and the fact that it can be used for a long battery life is the reason why Nintendo has chosen Nvidia.

4. NvidiaTegra Architecture

5. NvidiaGeForce ULP (I) Fully programmable Pixel and Vertex Shaders Floating point from top to bottom Open GL ES 2.0 native support Support for things like HDR Non-Unified Hardware (Pixel and Vertex Shaders are separated) Classical Programmable GPU architecture, non a tiling one.

6. GeForce ULP (II) 40 milionvertexs/sec (theorical maximum) 2 Texture Managament Units (240 Mtexels) 1 Raster OutPut Unit (120 Mpixels/sec) Clockspeeds: 120, 130 or 200Mhz All the numbers are related to the 120 Mhz version. Tegra First and Second Generation use the same GPU

7. The real performance of Tegra According to Nvidia the 120 Mhz version can move Quake 3 Arena running at 45fps. Quake 3 Arena engine moves 500K Triangles/Sec when it runs at 30fps. At 45fps it moves 750K Triangles/sec. 200Mhz version? 1.25M Triangles/sec. 10x NintendoDS performance. The same levels in geometry than Sega Dreamcast but with PS3 Graphical Quality

8. NvidiaTegra Roadmap

9. Tegra 2 Architecture Speculations says that this is the chosen architecture by Nintendo. 4 times the performance of the first generation. CPU Cortex A9 (Dual Core and Superscalar x2) GeForce ULP could be 4 times more powerful than the unit included in the first gen Tegra. Same power consumption than Tegra 1

10. Communications Nintendo DS2 could have 3G support We aren´t talking about a Smartphone from Nintendo here but the same business model for content that can be downloaded that Amazon Kindle uses. Iwata said in the last investors conference that he is very interested in Kindle business model.

11. My idea around the new design A single vertical touch screen sensitive to the pressure. It has 2 Framebuffers and it can be used a single screen or as a dual screen.

12. Features A single vertical screen instead of both of them The screen has two framebuffers and can run as a single screen or two of them. 24 bits color and better resolution per inch than the original DS. 8 or 16 GB NAND Flash,

13. DS is about Blue Ocan

14. Some people believes that the Blue Ocean Strategy is related to go to non-consumers and doing “casual things” they are wrong about it. If you want to understand Nintendo strategy with DS you must understand what Blue Ocean Strategy is. Blue Ocean Strategy is about Value Innovation. Let's see the most classical example of a Blue Ocean success.

15. Cirque du Soleil

16. The history of Cirque du Soleil (I) An excerpt from the Blue Ocean Strategy book: A one time accordion player, stilt-walker and fire-eater, Guy Laliberte is now CEO of one of Canada's largest cultural exports, Cirque du Soleil. Created in 1984 by a group of street performers, Cirque's productions have been seen by almost 40 million people in 90 cities around the world. In less than 20 years Cirque du Soleil has achieved a revenue level that took Ringling Brothers and Barnum & Bailey's Circus - the global champion of the circus industry - more than one hundred years to attain. What makes this all the more remarkable is that this rapid growth was not achieved in an attractive industry. It was in a declining industry in which traditional strategic analysis pointed to limited potential for growth. Supplier power on the part of star performers was strong. So was buyer power. Alternative forms of entertainment - ranging from various kinds of urban live entertainment to sporting events to home entertainment - cast an increasingly long shadow. Children cried out for Play Stations, rather than a visit to the traveling circus. Partially as a result, the industry was suffering from steadily decreasing audiences and, in turn, revenue and profits. There was also increasing sentiment against the use of animals in circuses by animal rights groups. Ringling Brothers and Barnum & Bailey's Circus set the standard and competing smaller circuses essentially followed with scaled down versions. From the perspective of competition-based strategy, then, the circus industry appeared unattractive. Another compelling aspect of Cirque du Soleil's success is that it did not win by taking customers from the already shrinking demand for the circus industry, which historically catered to children. Cirque du Soleil did not compete with Ringling Brothers and Barnum & Bailey's Circus to make this happen. Instead it created uncontested new market space that made the competition irrelevant. It appealed to a whole new group of customers - adults and corporate clients prepared to pay a price that is several times as expensive as traditional circuses for their unprecedented entertainment experience. Significantly, one of the first Cirque productions was titled "We Reinvent the Circus".

17. The history of Cirque du Soleil (II) Cirque du Soleil succeeded because it realized that to win in the future, companies must stop competing with each other. The only way to beat the competition is to stop trying to beat the competition. To understand what Cirque du Soleil has achieved, imagine a market universe composed of two sorts of oceans -- red oceans and blue oceans. Red oceans represent all the industries in existence today. This is known market space. Blue oceans denote all the industries not in existence today. This is unknown market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform their rivals to grab a greater share of existing demand. As the market space gets more and more crowded, prospects for profits and growth are reduced. Products become commodities, and cutthroat competition turns the red ocean bloody. Blue oceans, in contrast, are defined by untapped market space, demand creation, and the opportunity for highly profitable growth. While blue oceans are occasionally created well beyond existing industry boundaries, most are created by expanding existing industry boundaries as Cirque du Soleil did. In blue oceans, competition is irrelevant as the rules of the game are waiting to be set. It will always be important to swim successfully in the red ocean by out-competing rivals. Red oceans will always matter and be a fact of business life. But, with , supply exceeding demand in more and more industries, competing for a share of contracting markets, while necessary, will not be sufficient to sustain high performance. Companies need to go beyond this. To seize new profit and growth opportunities, they also need to create blue oceans. Unfortunately, blue oceans are largely, uncharted. The dominant focus of strategy work over the past 25 years has been on competition-based red ocean strategies. The result has been a fairly good grasp of how to compete skillfully in red waters from analyzing the underlying economic structure of an existing industry, to choosing a strategic position of low cost or differentiation or focus, to benchmarking the competition. While some discussions around blue oceans exist, there is little practical guidance on how to create them. Lacking analytic frameworks to create blue oceans and principles to effectively manage risk, creating blue oceans has remained wishful thinking that is seen as too risky for managers to pursue as strategy. This book provides practical frameworks and analytics for the systematic pursuit and capturing of blue oceans.

18. Value innovation If you take two companies that fighting for the same market space then you will see that both of them offer products with the same values. Usually product and services are defined by the boundaries of the market. Value innovation is about breaking the boundaries and make a new Value Curve

19. Cirque du Soleil is the fusion of Theatre and Circus.

20. The ERIC framework Erase Reduce Increase Create

21. Erase Erase all the elements in your product or service that makes impossible to break market boundaries. Cirque du Soleil took down the use of animals that made impossible to take elements from theatre.

22. Reduce Reduce all the things that are essential for the product or service but aren´t the main engine for its success in the new value curve. In the case of Cirque du Soleil they keep all the characters from the classical circus except one, the classical clown that is directly related to the children.

23. Increase Increase all the features that can take advantage from the new Value Curve. Cirque du Soleil increased the importance of classical figures of the circus like the acrobats because they could be used in middle of a story.

24. Create Create new values for the new Value Curve. The most easy form to do it is getting features from business that comes from the same market. Circus and Theatre are in the market of the spectacle. Cirque du Soleil spectacles are about telling a story (like theatre) using the classical figures of Circus.

25. What about Nintendo?

26. What is the nearest market to videogames?

27. Movies?

29. The answer is: Multimedia Applications.

30. Multimedia Applications? A multimedia application is type of interactive computer application. It uses a discrete medium (text, images, pictures…) with a continuous medium (video, sound, music, interactive graphics…) Videogames are a type of multimedia application. All the NintendoDS Non-Games are nothing more than multimedia applications. But you can integrate multimedia applications to the typical console controls

31. The answer was…

32. Nintendo Formula = User Interface Control Integration into the system NEW HARDWARE SYSTEM!! + Next Step will be passive user interface controls

33. Thanks to Touch Screen integration The other types of multimedia applications that were impossible to do in a conventional console became possible with DS. New UI helped Nintendo to break the boundaries of the market and reach new type of consumers. The next DS won´t be a simple upgrade of technical specs, it will add a new type of new consumers.

34. Old people is this new type of consumer

35. You only need to see the release of DSi XL

36. Old people is worried mainly by one thing Their health is important to them. Integrating the features of a device that can monitor their health and communicate with their doctors is very important to them. We know that the old people can be completely obsessed with their own health.

37. Imagine an interactive health guide

38. How monitorize health? Directly integrated inside the new handheld.

39. Why is it important? Iwata: Please let me add some notes. If Wii Vitality Sensor is simply a pulsimeter, we did not need such a grandiose announcement. It is a tool to analyze various biological signals by scanning the pulse, in order to make something invisible visible. The point with that is you can figure out your current conditions. I believe many of you have figured out with "Wii Fit", by weighing yourself every day you could figure out how the weight would change according to what you had done. Personally I have figured out how dining-out exactly affects my weights. And there are still more invisible factors, which Wii Vitality Sensor can make into something visible, by putting your finger on that every day. I have to refrain from disclosing too much to keep the surprises of announcement; but please note that Wii Vitality Sensor is not a simple pulsimeter. I have a strong feeling something fun will appear around this gadget, and am planning to put it as one of the next year's main topics.

40. Wasn´t the Vitality Sensor for the Wii? Yes, but the vitality sensor technology can be easily added to a new handheld. Wii is about disrupting the gaming industry, DS is about Blue Ocean, two different approaches. With DS 2 Nintendo will try to expand the market boundaries again makinga a new Value Curve. A new type of non-consumer will become a new consumer thanks to the integration of the Vitality Sensor.

41. This is all. Thanks for reading me