That figure confirms that Nintendo is definitely one of this country’s leading portable gaming manufacturers, but for comparison’s sake, we dug up numbers for the iPod touch, which is likely Apple’s most comparable device, rather than the always-connected iPhone or its larger and more expensive cousin, the iPad.

In a lawsuit, Apple revealed that as of March 2011 it had sold more than 60 million iPod touch devices worldwide since late 2007.

While those aren’t entirely comparable numbers — one is worldwide and the other is only in the U.S. — many are saying that Apple’s products are starting to eat into Nintendo’s traditional base of players. With these figures being so close, and Apple claiming that the iPod touch is the No. 1 portable game player, you can start to see why.

Last month, Nintendo sold more than 260,000 Nintendo 3DS units in the U.S., an increase of more than 10 percent from the previous month, following a much-needed price drop on Aug. 12.

The numbers were part of the NPD Group’s monthly figures, which state the overall health of the videogame industry. Generally, September is a sleepy month, as consumers hold off on making any big purchases and manufacturers delay big launches until the holidays.

The NPD Group said spending on hardware and software in September totaled $1.16 billion, falling 6 percent from the same period a year earlier, when consumers spent $1.23 billion. The sales only represent physical retail sales and do not include digital sales, which are fast becoming a big chunk of the industry.

During the month, software sales were helped out by the newly released Madden NFL by Electronic Arts, which was the top selling-game during the month.

Does life become a 90s rap video? Cham’ bustin’ 24/7?

I basically had no money in my twenties.

I was luckier than most, my parents helped with the rent and I had spending cash via the Web design firm I started in 1995, Mischief New Media. My clients were “major” record labels and I designed Web sites for their artists. I wasn’t that great and as soon as the Web started taking off they brought those things in-house. But I had a knack for product development and saw an opening for better uber-music destinations in a landscape that had few good ones. So on the side, I started building music sites I would use. RockOnTV, MusicNewsWire and MusicStation, just to name a few.

I got lucky and five years later sold my company to MTV Networks. All those sites were rolled into SonicNet.com, the biggest music site around at the time. Now all defunct!

All of a sudden, I had some money.

What did I do first?

While in my lawyer’s office I made a copy of the check. Then I found what I thought to be the mailing address of the principal that kicked me out of school before my senior year. I wrote “F*CK YOU” on the check and mailed it. I don’t know if she ever got it. But 11 years after high school graduation, I finally had some closure. Yes, I held a grudge, but now I was over it. It’s a long story of trust, betrayal, power gone mad, evils of authority and not for this post. :-) She represented all the people that didn’t believe in me. Deep breath and now back to the story …

The money. What did I do with the money?

Two things I remember vividly.

First, I called my mom up and said something like this:

Me: It’s done. I just sold the company to MTV.

Mom: Oh, my god! Oh, my god! I’m so proud of you!

Me: Bring every bill, everything you owe over to my place tonight. We’re gonna write some checks.

Mom: Are you serious? (SCREAMING)

Me: Yes, see you later.

So, Mom did just that. And for about an hour that night we wrote checks for credit card bills, rent, school, personal loans … you name it.

Buying things is certainly a lot of fun. Travel, cars, all that big pimpin’ stuff. But at the end of the day, if you can help or give back to those that did the same for you … well, that rocks. It’s a great feeling. More importantly, my mom was directly responsible for my product chops. When I was about 3 years old, she bought me a huge box of building blocks. Simple, made of wood, lots of shapes. There is no doubt in my mind that playing with those blocks shaped my creativity. They made me think about structure, balance, systems and more. She always made sure we had what we needed; she went without and worked hard to provide for us.

To this day, it’s the proudest moment of my life.

The second thing? Well, let me step back here …

When you’re an entrepreneur putting it all on the line, as least with me, I worked constantly. For five years. Eighteen-hour days. Getting out very little. Always thinking about work. Work, work, work. When you have one of these events, like selling, you can go a little crazy for a second. It’s not over, there is more to do to realize the dream. But it’s a moment where you get dizzy for a second. And I sort of reverted back to childhood for a few weeks. How so? I went on eBay and bought what I remember to be thousands of Matchbox cars. Why? Who the f*ck knows. I liked them when I was five years old. My mom used to buy me one a week. It was a good memory from simpler times. Now? I was a man-child with cash and clearly no idea what to do with it.

So, I’m sitting in my apartment and these boxes start coming in. I mean tons of them. Unopened collections of f*cking Matchbox cars. I opened one, took a deep breath and just started laughing. What the hell was I thinking? There was no way I was able to return these. My small apartment was filled with toy cars. What now?

I went out to get something to eat a few days later and I noticed the lobby of my building had these huge bins for a children’s toy drive. I turned around, got the wheely pushcart in the lobby and went back to my apartment. I loaded the boxes of cars up and within a few trips had given all of them away. Mostly unopened. In these digital times, needy kids probably thought … what moron is giving me a miniature car? I want Nintendo DS!

And so goes my few weeks of reverting to childhood nuttiness.

Yes, I ended up getting the car and the home. I’ve bought hundreds of pairs of sneakers that put Quincy Smith’s collection to shame. I’ve traveled to all sorts of great places. I love buying stuff for my nieces and nephew. I’ve pretended to be an angel investor. … And yes, of course, I’ve donated to causes (I’m not totally selfish), mostly having to do with education (see www.cfy.org). But these are the two things I remember most.

So what did you do? Tell your stories …

-JH

Jason Hirschhorn is an entrepreneur most comfortable at the intersection between entertainment and technology. He was formerly CEO of his first venture, Mischief New Media, Chief Digital Officer of MTV Networks, President of Sling Media and most recently Co-President of Myspace. Jason is also an investor in Howcast, Buzz Media, 5 to 1 and other startups. You can follow him on Twitter @JasonHirschhorn or via his widely read Media ReDEFined newsletter (@MediaReDEF or http://feedburner.google.com/fb/a/mailverify?uri=mediaredef)

The Japanese videogame maker said its net profit for the fiscal year ended March 31 was ¥77.62 billion ($944.5 million), down 66 percent from the year-earlier ¥228.64 billion. Revenue was down 29 percent to ¥1.014 trillion while operating profit was off 52 percent to ¥171.08 billion. Analysts polled by Thomson Reuters had forecast a net profit of ¥142.41 billion and revenue of ¥1.079.

Nintendo also said it plans in 2012 to launch a home console to replace the Wii, which has sold 86 million units since its 2006 debut. The company said it plans to show a working model at June’s E3 Expo in Los Angeles.

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The 3DS is the first major overhaul of Nintendo’s hand-held game system since it launched the popular Nintendo DS in 2004. With the 3DS Nintendo will upgrade how gamers can share information and play wirelessly with friends online.

Consumers are growing tired of the current DS hand-held. On Thursday, Nintendo said sales of DS machines fell 43 percent to 6.7 million units in the April-September period from a year earlier. Sales of DS software titles dropped 23 percent.

The Japanese company also reported its first interim net loss in seven years, hurt by weakening overseas sales and the strength of the yen. First-half revenue fell 34 percent to 363.16 billion yen ($4.44 billion) from a year ago.

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For the six months to September 30, the Japanese gaming giant reported a $24.7 million loss as sales of hardware and software slipped. Nintendo sold 6.69 million DS units during the half, down significantly from the 11.7 million it sold during the same period last year. And it sold fewer Wiis as well–4.97 million, down from the 5.75 million it shipped last year. On the software side, things were equally dismal. DS software sales declined to 54.84 million units from 71.15 million units in 2009; Wii software sales fell to 65.21 million units from 76.21 million units in the same period a year earlier.

The beginnings of an ugly trend for Nintendo, which is fast losing momentum in a motion-enhanced gaming market in which its rivals are gaining it. With Sony’s PlayStation Move motion controller already at market and Microsoft’s Kinect for XBox 360 (Project Natal) headed there next month, it is becoming increasingly clear that the Wii–now about four years old–needs a full-on refresh.

The videogame industry is littered with the corpses of failed portable game systems. Anyone still using a Nokia (NOK) N-Gage? How about a Sega Game Gear or a TurboExpress?

We got a first peek at the new device, which is called the Jungle, via a Web site that appears to be part of a very un-Panasonic like guerrilla marketing campaign. In a jokey tone, the Jungle’s Web site calls the device’s display “kick ass” and then tells visitors to “stay very closely tuned unless you’re tone deaf.” (For those curious, the Jungle looks like a shrunk-down portable DVD player with a built-in keyboard.)

If Panasonic (PC) needs to know how tough the handheld game market is, all they have to do is look at the struggles facing the current market leader. Nintendo Co.’s DS handheld has been one of the best-selling game systems of all time since its debut in 2004, but demand for the device has recently slowed. It’s been plagued by piracy and a challenge from simple games played on mobile phones.

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This morning, the videogame company reported its first full-year drop in revenue in six years, one in which revenue fell 22 percent to 1.43 trillion yen and operating profit dropped 36 percent to 356.57 billion yen.

Driving the declines: Wii sales that were down 21 percent year-over-year to 20.53 million. With global sales of the console expected to fall again this fiscal year–to 18 million units–the company is in desperate need of something to revive them.

Though it still leads in this generation of gaming hardware, Nintendo is struggling to maintain its momentum. With rivals like Microsoft (MSFT) working on Project Natal and other innovations, it is becoming increasingly clear that the Wii, now about four years old, needs a full-on refresh and not just new peripherals like the silly vitality sensor the company showed off last year.

With Apple’s (AAPL) iPhone and iPad making big inroads in portable gaming, the new 3-D version of the DS Nintendo is planning can’t come to market soon enough, though the company’s executives insist it’s holding its own.

Said Nintendo of America President and COO Reggie Fils-Aime: “We have not seen any impact on our DS business [from the iPad]. In the first three months, we’ve set two new sales records for the Nintendo DS. We think that through April, we’ll have the best four-month time period to kick off a new calendar year that we’ve ever had with the device. So we’re certainly seeing momentum, they’re seeing momentum–I think two products can succeed at the same time.”

Nintendo of America President Reggie Fils-Aime spoke to the Wall Street Journal about his thinking beyond the new games:

WSJ: In Nintendo’s presentation, the first two pieces of software discussed for the new DSi XL portable game device were “America’s Test Kitchen,” a collection of recipes, and “100 Classic Books.” Is Nintendo positioning the DS to be a broader entertainment device?

Fils-Aime: We’ve always said that both the Wii and DS are entertainment platforms. (The brain teaser quiz games) Brain Age and Brain Age 2, for example, aren’t traditional games. These are ongoing initiatives to expand our user base.

WSJ: But at the same time, consumers have a broader selection of entertainment options with devices like Apple’s (AAPL) iPod touch, iPhone and the soon-to-come iPad and free-to-play games on Facebook. How do you compete with that?

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Among the consoles, the Nintendo Wii sold 3.81 million units, more than triple the 1.26 million sold in November. The Sony (SNE) Playstation 3 sold 1.36 million units, nearly twice the number sold in the previous month. Microsoft (MSFT) Xbox 360 units were 1.31 million, up from 819,500 in November. Even the aging PS2 had a good month, with 333,200 units, up from 203,100 one month earlier.

In the handheld category, the Nintendo DS sold 3.31 million units, up from 1.7 million in November, while the Sony PSP sold 654,700 units, up from 293,000.

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You’d never believe it, you never would know, that Christmas had come, at least not by the snow. All the geeks in the Valley were typing away, forced to take a short breather on this year’s Christmas day. So read on for info, this update, dear friends, as Christmas is over and a new year begins.

In time for Christmas, in technology news, Walt opened his column on product reviews. It seems, I am told, that holiday travel, with two screaming children can make brains unravel. So what could one bring, on a holiday trek, to keep little ones smiling and not cause a wreck? In a guest post by Nick–Wingfield’s his name–we saw Apple’s iTouch, the best in the game. He talked PSPs, and Nintendo DS’s, but versatile and thin, iPod touch got the yesses.

At Mossberg Solution, Katie was typing, a fresh new post to help holiday griping. For if through your window, this holiday season, a new Mac has drifted, you might have a reason. The keyboard is different, and programs won’t close, all those whoosits and whatzits, no one really knows. But Katie was there, she did not take a rest, to show you the way to make your new Mac the best. Remember to “Quit,” on that Mac she said, ’cause those little red x’s won’t put the program to bed. And one final thought, if it doesn’t seem rude, Katie recommended a new attitude. You see, on the Mac, once they’ve been detected, to remove those hard drives, they must first be “ejected.”

It was all about BoomTown, this week in the news, as Kara looked at upcoming interviews. She’s worked much too hard and now they’ve said yes, but the lineup is set for our CES. With Hastings and Rubin and Rubinstien all, we’ll get their big scoops at the big techie ball. If tech shows are cold, with their gadgets galore, Kara posted a post about what’s in store. She traveled to Twitter and talked with Biz Stone, who thinked up some thoughts on how tweeting has grown. He pensively pondered, and stroked his cute chin. Some thoughts on the future, he gave with a grin. Kara was waving goodbye, flying off to the sand, to spend time with her family, mai-tai in hand. But before she got buckled and the jet engines roared, she solved a small mystery while climbing aboard. It seems, oh you see, that she’d gotten some news, about MySpace, Flixster and movie reviews. The two have been talking, oh talking some talk, with Rotten Tomatoes along for the walk. So she boarded the jet, all shiny and tall, waving goodbye to BoomTown for some vacation, if small.

At MediaMemo HQ, it was Peter this week, opening the media door and taking a peek. Over at TMZ, they are all talking sports, it seems they are thinking, a new venture of sorts. The connection makes sense, though the idea is small. They might thank Tiger Woods for starting it all. And just when you thought you’d bought all your gifts, Peter covered that thing that’s on every geek’s lists. It seems to Peter, that maybe, perhaps, the new Apple (AAPL) tablet would need big tablet-sized apps. That’s just what he found, when looking this week; some big app developers had given a tweak. They’ve made everything bigger, for what we don’t know, but whatever it is, the screen sure did grow. Peter covered it all, including abuse. There were gremlins, not elves, about, on the loose. While most new tech start-ups were shopping for backers, the biggest of bigs were snorched on by hackers. Amazon (AMZN), Wal-Mart (WMT), and more in the cloud, got hit by bad geeks, doing things not allowed. They recovered it quickly, and locked up their gate, making sure all your packages still wouldn’t be late.

So as you relax, and come down from the Yule, whether frozen at home or splayed out by a pool, Weekend Update is here, as is AllThingsD, to keep you informed when you’ve got places to be. Please leave us your comments, thoughts, queries and questions. We’d even adore your most helpful suggestions. And enjoy those around you, this holiday season. It’s friends, family and loved ones that give our lives reason.

“The continued economic turmoil, and in particular the troubling unemployment rate, is undoubtedly impacting industry sales,” said NPD analyst Anita Frazier. “Our latest Economy Tracker indicated that although consumers’ general opinion about the economy is improving, their outlook on their own personal situation is worsening. If consumers’ personal outlook continues to erode, they could very well be much more conservative with their holiday shopping this year.”

A somber warning for the videogame industry. Even recent price cuts on game consoles have done little to spur demand.

“Year to date, the hardware category has experienced the sharpest decline in the industry, with unit sales down 10 percent compared to the same time period last year,” Frazier wrote. “Recent price cuts helped spur a one- to two-month increase in unit sales, and this month’s Wii sales reflect that boost, but the other platforms have not sustained the sales momentum after price reduction.”

The videogame industry may be recession-resistant, but it is clearly not recession-proof, as some once believed. Sales data, below.

U.S. Hardware Sales, October 2009

1. Wii 506.9K
2. Nintendo DS 457.6K
3. PlayStation 3 320.6K
4. Xbox 360 249.7K
5. PSP 174.6K
6. PlayStation 2 117.8K

U.S. Top Ten Software Sales, October 2009

1. Uncharted 2: Among Thieves (PS3, Sony) 537,000
2. Wii Fit Plus (Wii, Nintendo) 441,000
3. Borderlands (360, Take 2) 418,000
4. Wii Sports Resort (Wii, Nintendo) 314,000
5. NBA 2K10 (360, Take 2) 311,000
6. Halo 3: ODST (360, Microsoft) 271,000
7. NBA 2K10 (PS3, Take 2) 213,000
8. Forza Motorsport 3 (360, Microsoft) 175,000
9. Kingdom Hearts 358/2 Days (DS, Square Enix) 169,000
10. FIFA Soccer 10 (360, Electronic Arts) 156,000

A study by DFC Intelligence, released on Friday, predicts that games for the iPhone and iPod touch (an iPhone without the cellular capabilities) will be the principal drivers for growth in the overall portable and mobile gaming market in five years.

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Apple has sold some 225 million iPods to date, making it one of the most popular electronic devices ever. And it’s sure to sell even more after the updates the company announced at this morning’s event. Among them: Larger, cheaper iPod touches and nanos with cameras and FM radios.

Following introductory remarks by Apple (AAPL) CEO Steve Jobs, Phil Schiller offers details, noting that “the iPod has 73.8 percent market share. The next biggest category is ‘other,’ and after that, SanDisk and then Microsoft pulling up the rear.”

Schiller adds that Apple has sold 20 million iPod touches since the device debuted. He runs through a lengthy sales pitch for the iPod touch, touting it as a killer pocket computer and taking potshots at rivals like Dell (DELL) along the way.

Moving on to games, Schiller notes the discrepancy between the number of games on gaming platforms like the Nintendo DS and the iPod touch. The iPhone OS, he notes, has 21,178 games. The DS has just 3,680. Point taken.

Moving on to some new game demos now. First up: Ubisoft with Assassin’s Creed 2, which, we are told, is “all about visceral combat, brutal hand-to-hand combat and one-shot kills.” Behind the presenter, a warrior is mercilessly beaten into submission.

Schiller returns to the stage, “Boy, that looks like fun.”

Tapulous, the developer of Tap Tap Revenge, and Gameloft, follow, both introducing new games. Gameloft’s Nova–a first-person shooter with multiplayer option–seems a far more compelling effort than Tapulous’s Riddim Ribbon, which appears to be a Black Eyed Peas-heavy variation of Tap-Tap.

Up next, Electronic Arts, which is apparently headlining the games section of today’s event. EA’s Travis Boatman takes the stage to introduce Madden NFL 10. The game boasts both custom-kick and draw-a-play-on-screen features developed specifically for the iPhone OS. Madden NFL 10 is available today.

Schiller again returns to the stage. “The iPod touch is the most affordable gateway to the App Store,” he says, adding that $199 is a “magic price point” in the iPod market.

With that, he announces the iPod touch price cuts we heard about earlier this morning: An 8GB model for $199, 32GB for $299, and 64GB for $399. All three devices are significantly faster, says Schiller. Interestingly, none seem to feature that rumored camera.

Price drops as well for the nano, but we knew about these. Apple has dropped the price of the iPod shuffle as well: $59 and $79. And the company is offering them in a new selection of colors. Plus, there’s a special edition of the shuffle crafted from stainless steel.

Steve Jobs returns to the stage. So those are the iPods, but there is one more thing: A video camera. He talks about the exploding video market, mentions the Flip, etc. “We want to get in on this market as well and we’re doing it for free….Boy, this really is the new Apple,” he quips.

Yes, the iPod nano does indeed now feature a video camera. The video quality looks impressive. Whoa: Apple has also added FM radio, a voice recorder and a pedometer to the nano. New polished anodized aluminum colors. 8GB model for $149, 16GB model for $179.

After a few concluding remarks about the new iPod lineup, Jobs announces what has become an annual tradition at these events: A live performance. Today’s artist: Norah Jones.

The end of her set concludes today’s event. No iPlatform. No Beatles on iTunes. But lots of product refreshes, software intros, and price cuts. Plus: Steve Jobs is definitely back.

Live from Apple’s “Let’s Rock” Event

• iPod Updates, Games, Nano Video Cameras
• iTunes 9, iTunes LP, Home Sharing, Genius Mixes
• Steve Jobs: “I’m Vertical, Back at Apple and Loving Every Day of It”
• Event Photos by Adam Tow

Apple has sold some 225 million iPods to date, making it one of the most popular electronic devices ever. And it’s sure to sell even more after the updates the company announced at this morning’s event. Among them: Larger, cheaper iPod touches and nanos with cameras and FM radios.

Following introductory remarks by Apple (AAPL) CEO Steve Jobs, Phil Schiller offers details, noting that “the iPod has 73.8 percent market share. The next biggest category is ‘other,’ and after that, SanDisk and then Microsoft pulling up the rear.”

Schiller adds that Apple has sold 20 million iPod touches since the device debuted. He runs through a lengthy sales pitch for the iPod touch, touting it as a killer pocket computer and taking potshots at rivals like Dell (DELL) along the way.

Moving on to games, Schiller notes the discrepancy between the number of games on gaming platforms like the Nintendo DS and the iPod touch. The iPhone OS, he notes, has 21,178 games. The DS has just 3,680. Point taken.

Moving on to some new game demos now. First up: Ubisoft with Assassin’s Creed 2, which, we are told, is “all about visceral combat, brutal hand-to-hand combat and one-shot kills.” Behind the presenter, a warrior is mercilessly beaten into submission.

Schiller returns to the stage, “Boy, that looks like fun.”

Tapulous, the developer of Tap Tap Revenge, and Gameloft, follow, both introducing new games. Gameloft’s Nova–a first-person shooter with multiplayer option–seems a far more compelling effort than Tapulous’s Riddim Ribbon, which appears to be a Black Eyed Peas-heavy variation of Tap-Tap.

Up next, Electronic Arts, which is apparently headlining the games section of today’s event. EA’s Travis Boatman takes the stage to introduce Madden NFL 10. The game boasts both custom-kick and draw-a-play-on-screen features developed specifically for the iPhone OS. Madden NFL 10 is available today.

Schiller again returns to the stage. “The iPod touch is the most affordable gateway to the App Store,” he says, adding that $199 is a “magic price point” in the iPod market.

With that, he announces the iPod touch price cuts we heard about earlier this morning: An 8GB model for $199, 32GB for $299, and 64GB for $399. All three devices are significantly faster, says Schiller. Interestingly, none seem to feature that rumored camera.

Price drops as well for the nano, but we knew about these. Apple has dropped the price of the iPod shuffle as well: $59 and $79. And the company is offering them in a new selection of colors. Plus, there’s a special edition of the shuffle crafted from stainless steel.

Steve Jobs returns to the stage. So those are the iPods, but there is one more thing: A video camera. He talks about the exploding video market, mentions the Flip, etc. “We want to get in on this market as well and we’re doing it for free….Boy, this really is the new Apple,” he quips.

Yes, the iPod nano does indeed now feature a video camera. The video quality looks impressive. Whoa: Apple has also added FM radio, a voice recorder and a pedometer to the nano. New polished anodized aluminum colors. 8GB model for $149, 16GB model for $179.

After a few concluding remarks about the new iPod lineup, Jobs announces what has become an annual tradition at these events: A live performance. Today’s artist: Norah Jones.

The end of her set concludes today’s event. No iPlatform. No Beatles on iTunes. But lots of product refreshes, software intros, and price cuts. Plus: Steve Jobs is definitely back.

Live from Apple’s “Let’s Rock” Event

• iPod Updates, Games, Nano Video Cameras
• iTunes 9, iTunes LP, Home Sharing, Genius Mixes
• Steve Jobs: “I’m Vertical, Back at Apple and Loving Every Day of It”
• Event Photos by Adam Tow

Here are a few questions about computers I’ve received recently from people like you, and my answers. I have edited and restated the questions a bit, for readability.

A friend’s Windows XP PC is having troubles. He wants to copy its contents onto a separate backup drive. Will he encounter problems if he tries to transfer this material to a Windows 7 unit he plans to buy when available?

He should have no problem at all with the data files, such as Office documents, music or photos. However, it may not be possible to transfer the programs and settings without reinstalling them from the original disks or downloaded installation files. And he may also have to re-install any patches or updates to these programs. Microsoft plans some sort of system to make this process simpler than it might be, but I don’t yet know how it will work.

I am not a super techie but would like to view Internet videos from my computer, attached to my TV. What do you recommend? Is there a system or a product that would be best for my needs?

You very likely don’t need any special product, other than the right cables and, if need be, adapters, to connect your computer and your TV. This choice depends on the details of your computer’s graphics capabilities and output ports, and the input ports and capabilities of your TV. All of this is much easier if the PC and TV are relatively modern — say, two years old or less. But, whatever their age, you should visit a competent electronics store that sells cables, provide the staff with the details of the two products, and seek their specific advice.

With the rising popularity of the netbook, do you know, or expect, that Apple will come out with a netbook? I would be very interested in getting one.

I know of no such plans. In fact, Apple officials have said they have no interest in producing a netbook, which is a small, inexpensive laptop, and have disparaged the category. However, Apple is quite secretive, and sometimes enters categories it had previously laughed off. Also, there are persistent rumors that Apple is working on a flat, tablet-style computer — perhaps a much larger version of its iPod Touch pocket-size device. If these rumors prove true, such a tablet might compete with netbooks.

Our daughter has asked for nothing but a Nintendo DS game system for more than a year now. Her birthday’s in two weeks. She says she’d be happy with the cheaper DS Lite, but is it worth going with the new DSi for $40 more? Do you think the DS Lite will become obsolete, in terms of new games for it?

Obviously, this depends on your budget, and I don’t think there’ll never be another new game for the DS Lite. But if the $40 price difference isn’t an obstacle, I’d go with the DSi, because I assume that, over time, more and more games and other software will emerge that will run only on the higher-end model.

• You can find Mossberg’s Mailbox, and my other columns, online free of charge at the new All Things Digital Web site, http://walt.allthingsd.com.

And so the industry gathered in San Francisco for the annual Game Developers Conference to rally its troops. While the PC industry is expecting its second consecutive year of negative unit sales growth, much of the talk at the conference was of 5 to 10 percent annual industry growth, and of the prospects for another record-setter in 2010.

Nintendo was particularly buoyant at the show, where it introduced an Internet-enabled version of its portable DS player that will sell for $169, and announced its 50 millionth Wii shipment.

How’s this for confidence? Nintendo Of America President Reggie Fils-Aimé in an interview ruled out any potential for Nintendo to lower the price of its motion-controlled Wii game console this year. “Why would we?” he said.

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This time the outcry is over the Nintendo DS-bound Chinatown Wars and its drug-dealing minigame, which offers players the chance to try their hand at a little narcotics trafficking. “We wanted to have a drug-dealing minigame in lots of the GTA games,” said Rockstar vice president Dan Houser. “We played with it a little in ‘Vice City Stories,’ because it worked really well juxtaposed with the main story. It works well with what GTA is, with driving around the map, and it gives you another thing to think about–another layer or piece of the puzzle to keep you motivated.”

And another layer to add to the GTA marketing campaign, which clearly thrives on controversy.