Will the battery problems of the Nvidia Shield have far reaching implications for handheld devices?
Nvidia Corporation's (NASDAQ:NVDA) recall of its handheld device, Shield, may have significantly adverse impact on the future of handheld gaming devices. The recall was initiated due to fire hazard in the Y01 battery which is deployed in the device.
The recall does not bode well for the future of Nvidia Shield and other handheld gaming devices such as PlayStation Vita, by Sony Corporation (NYSE:SNE). The negative publicity which entails a product recall, will be difficult to overcome for the Nvidia brand. Potential buyers will not only be hesitant to buy the Shield, other handheld gaming devices may also be viewed with caution.
Nvidia Shield was an adventurous foray into the Google Inc. (NASDAQ:GOOG) Android platform. Shield was a new beginning for Android on the handheld-based market, which has long been dominated by video gaming giants PlayStation with their Vita offerings. The problem that handheld franchises now face is how to attract new customers or retain their current user base, on the back of a recent slew of negative publicity.
The handheld market already faces challenges from next-gen consoles. It makes sense to buy a console to enjoy games at home, rather than spend money on a handheld gaming device whose functionality and game titles are relatively limited. Prior to its recall, the Nvidia Shield was set to change that with its functionality and a multitude of titles.
The handheld console market continues to die a a slow death. The Shield recall may well be the final nail in the coffin for handheld gaming devices.
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