Nintendo president Satoru Iwata has reiterated his company's strategy in an era when smartphone devices are increasingly prevalent.
Speaking to investors at a financial gathering last Wednesday, Iwata declared that "no dedicated gaming systems are worthy of existence unless our games give consumers unparalleled fun".
He made the claim whilst responding to a general question on smartphone games, in which he suggested that quality of content is the best way Nintendo can battle the rock-bottom prices of iOS and Android apps.
Iwata also said Nintendo survived the advent of mobile phone gaming at the turn of the century, and that the same feat would be achieved again.
"When i-mode for cell phones started in Japan, many people said that, as application software including games worked on cell phones, everyone would play games only with their cell phones because they are practical items they always carry, which would eventually eliminate handheld gaming devices," he began.
"We were asked about this matter many times and answered that we would try something that cannot be done on cell phones. After that, we were able to see the positive result of the Nintendo DS system.
"On the other hand, it can be said that the fact that Nintendo DS was able to demonstrate the new potential of touch screens, and as a result, created our new rivals called smart devices, I really feel that history is repeating itself."
In the same investor Q&A the Nintendo president said he expects Wii U to be profitable in the next fiscal year.