Nintendo has announced a 46 per cent drop in quarterly profits, with the Japanese gaming giant's sales hit hard by the impending arrival of its next generation handheld, the 3DS.
With the 3Ds launch imminent, Q4 sales of the DS plummeted, and Sony compounded the misery at Nintendo HQ by announcing the PSP2 – or PlayStation NGP.
Sales fals were always likely as people held off buying their latest handheld, but Nintendo was also forced to cut its sales forecast for the Wii as well – from 17.5 million to 16 million in the first quarter of 2011.
Sales forecasts of the DS were dropped from 22.5 million units to 23.5 million.
Things were not all bad, however, with operating profit maintained thanks to stronger sales of software for the Wii.
Nintendo has shown its resilience in the past, though, and despite the PSP2 announcement the 3DS is likely to sell well to its legion of fans.
The portable console brings a 3D screen which has garnered huge attention, along with an analogue stick and a whole host of slightly scary social functionality.