Nintendo Profits Slump Amidst Decreasing Demand

Nintendo has reported the first drop in its profits for six years after declining demand for consoles products from Japanese gaming giant and the strength of the Yen, which has put pressure on exports, mean the company's previous command of the gaming market has slipped.

The company's reports the fiscal year ending 31 March state that sales during the fiscal year of 2009 fell by 23.1 per cent to $12.5 billion.

Profits during the same period also fell by 9.4 per cent to $2.04 billion. Nintendo's profit in the previous fiscal year was a huge $2.96 billion.

A recent Associated Press article reported that sales of Nintendo's handheld DS in the same period dropped from 25.62 million units to 23.35 million units. DS software sales fell from 163.77 to 121.39 million units.

Sales of Nintendo's Wii gaming console dropped from 20.5 million to 17.05 million while those of the Wii software sales slipped from 163.79 million units to 156.64 million.

It will be interesting to see whether the other gaming giant, Sony, will suffer the same fate as the Nintendo.