Nintendo has reported its October to December quarterly results, which have arrived below analysts’ estimates. Profits fell 46 percent on the back of stalling DS handheld console sales and stiffer competition from both Sony and Microsoft who both recently debuted motion-controlled interfaces. Nintendo returned an operating profit of $1.3 billion, down from $2.3 in the year ago quarter.
While Nintendo has been fighting off competition from Microsoft and Sony in the console wars, it has also seen its handheld sales slump in the face of competition from Apple’s iPod touch. Consequently, Nintendo has revised its sales forecasts for the next quarter. It estimates that it will now ship 16 million Wii consoles, instead of a previously forecast 17.5 million. It also now believes that it will ship 22.5 million DS handhelds, down from 23.5 million. One reason cited for the slow down was the company’s inability to ship the forthcoming 3DS, glasses-free 3D handheld console in time for the holiday season.
Despite the news Nintendo shares closed 0.9 percent higher, although its shares dropped 12.5 percent over the course of 2010. [via Reuters]
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