The company sold only 3.35 million Wiis between April and September, down from 4.97 million in the same time frame of 2010. Game shipments dropped dramatically from 65.2 million last year to 36.5 million units.
The 3DS is not as strong as Nintendo hoped for and sold just 3.07 million units (8.13 million games). The forecast for game sales for the fiscal year was reduced from 70 million to about 50 million. The regularDS console dropped from shipments of 6.69 million to 2.58 million devices. Nintendo said about 29 million DS game units shipped during the quarter, down from 54.8 million in 2010.
"Nintendo faces a very harsh time now" said Koichi Ogawa, chief portfolio manager at Daiwa SB Investments, Bloomberg. "Competition in the video-game industry is getting severe, and Nintendo must fight for customers who are using smartphones and tablets."
Nintendo's quarterly revenue declined by 41 percent to about $2.8 billion; the net loss was about $26 million. The company told analysts that that it may be reporting its first annual loss in 30 years. President Satoru Iwata stressed that the upcoming Wii U will be introduced in June 2012, and there is no doubt that Nintendo will rely on the success of the console to recover from its current struggles.
Got anything? Yeah, me neither. Instead of supporting their console that dominated the market for several years with more first-party titles, they pushed (rushed?) out a new half-upgrade for the Nintendo DS with gimmicky 3D as its "best" feature. The two flagship games for the 3DS were 15 years old and on the Nintendo 64, AND neither of them were out at launch.
Meanwhile, phones, tablets, Xbox 360, PS3, and hell even PC see continued support all the time. There may be turn around with some AAA titles like Skyward Sword, Mario Land 3D, and Mario Kart 3D on the horizon, but the lost ground will not return quite as easily anymore.
As for why they're having a tough time, well I (as well as good portion of people here) am no expert so all I can say would be that it's most likely a mix of things:
1) The 3DS doesn't differentiate itself enough from the other DSes, this is just an idea of course. The Wii U might have the same problem, kid wants a Wii U, parent tell them they already have a Wii.
2) As some people said there wasn't that many launch titles, I'd argue that while that is a valid point I don't think it's as important, in fact people might be getting a bit tired of the same old IPs, though that's up to opinion.
3) Recession, people just don't want to spend, half of Europe is in a debt crisis after all
4) Looking at wikipedia it says they've sold 90 million Wiis and 150 DSes... let's be honest, that had to slow down at some point and I don't know about other people but I've NEVER had a Nintendo console break on me, which means I never went out and bought a replacement one... ok a bit of a weak argument, I really wanted 4 points, there are probably many more possible reasons for sales slowing down
From what I've seen of it I think the Wii U has a lot of potential and I look forward to seeing how it pans out.