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Nintendo loses 3DS patent battle

Nintendo loses 3DS patent battle

The 3DS has sold approximately 35 million units as of September 2013.

Nintendo has lost a court battle over the glasses-free 3D technology used in its handheld 3DS consoles.

The gaming giant was taken to court by Tomita Technologies, a company which has already successfully taken Nintendo to court on a similar matter relating to the 3DS.

Following the ruling, Nintendo must pay Tomita 1.82% of the wholesale price of each 3DS sold, working out to approximately $3 per unit. This means Nintendo will have to pay out approximately $105m for the 35 million units that have already been sold.

Judge Rakoff, who presided over the case, explained that the court decided on a royalty rate as opposed to the flat dollar rate that Tomita had initially requested. This was to ensure that Tomita did not gain an unfairly increasing proportion of 3DS sales as the console's price fell.

Tomita's previously successful patent suit concluded last March and resulted in Nintendo being ordered to pay $30.2m, although this was later reduced down to $15.1m.

Nintendo's newest console, the Wii U, has continued to struggle with the machine only selling 3.91 million units worldwide by the end of September 2013. Reports suggested however that the Wii successor was one of the most sought after Christmas presents, so this figure could have shifted since then.

8 Comments

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Corky42 7th January 2014, 11:48 Quote
Is this going to another nail in the coffin for Nintendo ?
kenco_uk 7th January 2014, 12:55 Quote
I really hope not.
SAimNE 7th January 2014, 20:47 Quote
personally i think the wiiu isnt really that bad. the wii was the mistake, wiiu is right about where you would need it to be to comfortably view vids and play casual games. the crap that couldnt even use hdmi or HD was a total embarrassment to tech but the wiiu gets all the heat.
TrevDX 7th January 2014, 20:57 Quote
Quote:
Originally Posted by Corky42
Is this going to another nail in the coffin for Nintendo ?

I don't think this is a big issue for them personally, the numbers that are used, $105m in royalties, are large but then that's 35 million units sold which is also alot for Nintendo.

Also I don't think the Wii U will be a problem for Nintendo either as I don't think they'll just give up on it, look at what happened with the Gamecube that should have sunk them like the DC did for Sega but I know I (and others I know) but their consoles to play their exclusive IP's not the third party stuff.
Xir 7th January 2014, 22:37 Quote
As a WII owner, I see nothing enticing about the WIIU.
Okay, hdmi would have been nice, but otherwise...
The advertisements rotate around the second screen controller, but (imho) fail to show the value of this feature.
SAimNE 8th January 2014, 01:57 Quote
Quote:
Originally Posted by Xir
As a WII owner, I see nothing enticing about the WIIU.
Okay, hdmi would have been nice, but otherwise...
The advertisements rotate around the second screen controller, but (imho) fail to show the value of this feature.
yeah the commercials really dont give credit to how awesome that pad is. infact i'm really really hoping someone finds a way to use it with a comp someday :D. it's surprisingly comfortable despite it's size, while not high quality the screen has a respectable response time, and while not universal a lot of the video apps will let you use the pad to watch if your alone without ever having to even touch your tv. it has it's flaws but overall that pad is flat out enjoyable.
fluxtatic 8th January 2014, 06:12 Quote
Quote:
Originally Posted by Corky42
Is this going to another nail in the coffin for Nintendo ?

I hardly think paying a 1.82% royalty amounts to so much as a tack in this "coffin" you're imagining Nintendo to occupy.

This is a company that's been around for well better than 100 years. Yeah, they've made a handful of mis-steps these past few, but to think they're going to just suddenly go under is foolish.

They don't have the death-grip on the industry they once had, true, but the company is far from stupid. They'll adapt and survive.

Although I do hope they still kick themselves over the meltdown in the partnership with Sony. That's gotta sting.
Corky42 8th January 2014, 08:36 Quote
I'm not the one imagining it, i was just pointing out that they haven't had the best run of luck recently and this latest news just adds to the bad news we keep hearing on Nintendo.

Personally i want them to still be around in 10-20 years time, and anyhow 'analysts' for what they are worth say Sony has a higher chance (%78) of going bankrupt within the next two year than Nintendo.
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