Nintendo Shares Rise on September Event and 3DS Announcement Rumors

It's like a benefit concert to save a dying species. In a move to prevent the Nintendo 3DS from becoming extinct, Nintendo (NTDOY) is rumored to be holding an event in Tokyo next month to announce new games and potential hardware modifications. Shares of the company rose more than eight percent on the news. Reuters has the scoop, citing the Dow Jones Newswires as the source of the trade event news, while French technology website 01net claims the company is developing a second joystick for the 3DS “while working on a new version of the games player for release next year.” How would a second joystick work, exactly? That point isn't entirely clear. But assuming there's an error somewhere, it's safe to say that the second joystick will be tied specifically to the next version of the 3DS. This, however, is a highly unlikely move. While the Reuters report indicates that Nintendo could release a new 3DS that de-emphasizes the 3D aspect of the system (which is not entirely out of the question, especially if Nintendo released this unit at a lower price and included a new game), there is no way that the company would further dilute the value of the struggling handheld by dividing the market into two segments: those who have two joysticks and those who don't. Rather, Nintendo must suck it up, swallow its mistakes and realize that, in addition to releasing a system without any good games, it also released a handheld with lackluster graphics, lousy buttons, and only one thumbstick. These mistakes cannot be remedied without alienating the existing customer base. If Nintendo did that, it might as well throw in the towel right now and hand Apple AAPL, Google GOOG and Sony SNE the handheld crown. More realistically, this forthcoming event will focus on new game announcements, specific release dates for many games, and a plethora of hype for 2012. If we're really lucky, those of us who rushed to buy the 3DS at launch may one day stop regretting that decision. Follow me @LouisBedigian