Nintendo announced a slump in their profits for the year ending December 2011. The earnings calls show that Kyoto-based Nintendo shed off $627.9 million during the 9 months ending December 2011, compared to an almost similar amount in profits the game maker made in the previous year 2010. Nintendo attributes this loss to slowing sales in its 3DS console as well as sliding sales for its Nintendo Wii. The company also says the strong Yen, which erodes earnings made overseas, has also had a part to play in its diminished profits.
Nintendo, previously marketing their gaming consoles to so-called “casual gamers” are beginning to feel the heat from smart gadgets such as Apple’s iPhone and iPad, both of which allow users to play games interactively while on the go. To add to this, Sony Corp. are also lining up a new version of the Sony PlayStation Vita, which has up to 6x more processing power than the current model and is due for release to the American and European markets soon.
In a bid to allay fears that Nintendo may be experiencing challenges that it may not be able to surmount with its current stable of products, Nintendo also announced that they would be releasing a new version of the Wii, the Wii U, which shall have a touch interface in time for the holiday period end of 2012. Nintendo sales however continue to outpace PlayStation sales.