Nintendo has always focused on developing exclusive software with a broad enough appeal to get people to buy the hardware to play them. President Satoru Iwata has so far stubbornly resisted any suggestion that the company might veer from its console-based strategy to create content for mobile phones. Nintendo has been proven right time and again, with blockbusters such as Zelda, Donkey Kong, Pokemon, and Super Mario Bros. attracting hordes of gamers to its consoles. But after navigating all manner of complex obstacles and defeating a diverse range of enemies, it seems Nintendo's Mario may have met his match with the smartphone, unless he changes tactics. The company's latest willingness to try out free-to-play games reveals an awareness that some changes, even on a small-scale at first, need to be made. A new generation of young users is downloading game apps for smartphones and tablet computers by the millions, bypassing the game consoles favoured by previous generations and contributing to disappointing sales for Nintendo's latest game machines. Smartphone game makers typically make money out of free-to-play games by charging for additional items that enhance users" game-playing experience-a business model that has turned out to be surprisingly profitable. Sales of the Nintendo 3DS have disappointed, hitting about 14 million units in the year ended in March, missing the company's original target for 18.5 million. The Wii U, released last November, shifted only 3.45 million units, shy of initial sales projections of 5.5 million. Mr Iwata made clear to analysts at a meeting last week that Nintendo has no plans to offer Mario or Pokemon games-among the company's strongest brands-in a free-to-play format. On the other hand, what do we do when we want to offer a completely new product whose value consumers have yet to understand? Consumers are not sure if the new product will be worth the price," he said, leaving the door open to some initial experimentation with lesser known titles.