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While this week’s news that Nintendo is to launch yet another revamped version of its market-leading DS handheld indicate the Japanese gaming giant is sitting pretty amongst its hardware rivals, waning sales connected to the Wii home console suggest otherwise.
Is Nintendo\'s profit bubble about to burst? Image: stopnlook/Flickr.
More pointedly, Nintendo’s profit haul has plummeted by more than 50 percent over the last six months, with Net income reaching 69.5 billion yen (approx. $762 million USD) between April and September, which is a marked decline from the 144.8 billion yen (approx. $1.58 billion USD) registered during the same period in 2008.
In terms of the Wii’s slowing sales momentum, the motion-sensing home console was pushed from top-spot at retail in both the United States and Japan during the month of September, despite Nintendo attempting to add appeal by cutting unit prices by 20 percent.
Nintendo has slashed its full-year profit forecasts on the back of the six-month slump, with the company expecting Net income of 230 billion yen (approx. $2.53 billion USD) for the year through to March 2010 – a substantial drop from its original forecast of 300 billion yen (approx. $3.30 billion USD).
The new DSi LL, which has two enlarged screens (4.25 inches, up from the original DSi’s 3.25 inches), will hit the Japanese market on November 21 and will also come with a fatter, easier to hold stylus and slightly improved battery life.
It's not all bad news for Nintendo however, after its hugely popular DS handheld pulled in some 11.7 million units sales across the six-month period -- despite being on retail shelves since the latter part of 2004.
And, impending DSi LL aside, if current rumour is to be believed, Nintendo plans to staunch the profit bleed with a new Wii console in 2010, which will be equipped with a Blu-ray drive and 1080p high-definition performance.
The Tech Herald: Nintendo confirms 'DSi LL' for November 21 arrival
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