Nintendo posts 22 per cent drop in profits

Poor global sales have seen Nintendo announcing its first drop in profits for six years.

The Japanese maker of family-friendly games consoles has posted figures which show a 22 per cent year-on-year decline in its bottom line profits.

The Kyoto company - which has relied on the popularity of its Wii games console and almost constant updates to its DS handheld platform to keep its coffers full - still managed annual sales of $15.4 billion but saw its margins slashed in part by a price cut to the flagship Wii gaming machine.

DS sales have also been singificantly impacted by Apple's iPhone and other app phones which allow punters to get their gaming fix on the move without having to carry around a bright pink toy.

Despite the global economic mess, Nintendo still managed to shift 20.5 million Wii boxes last year, making it the most popular console ever with total global sales in excess of 70 million.

Nintendo expects sales to continue falling over the next year but expects a new 3D version of the DS, expected some time this year, to pick things up a bit.