Nintendo Profits Decline Amidst Competition From Sony & Microsoft

Japanese video gaming giant Nintendo has revealed its poor performance results for the previous year with net income falling by 66 percent.

The announcement comes as Nintendo announced its financial performance for the fiscal year ending March. The company reported that its net income fell by 66 percent to 77.6 billion yen or $946 million during the fiscal year, amidst fierce competition from Microsoft and Sony.

The company’s entire financial outlook for the fiscal year failed to meet analyst estimates. Nintendo’s hope now rely on the next generation Wii console and the newly launched 3DS for battling Microsoft and Sony in the global games market.

Nintendo informed that the sales of the Wii console fell by 14 percent this year to 13 million units this fiscal year while the software sales fell by 30 percent to 120 million units.

The company also warned that the devastating tsunami and earthquake that hit Japan could have an indirect impact on the company.

“The aftermath of the Great East Japan Earthquake is unpredictable. Nintendo has not suffered any direct damage which will significantly affect our production. However, it can be predicted that there will be an indirect impact from individual consumption patterns,” Nintendo said.