Nintendo reports falling profits as GameCube console became obsolete

Nintendo reports falling profits as GameCube console became obsolete

The original kings of the gaming console market Nintendo is due to launch their next generation gaming console Nintendo Revolution next year. They have invested heavily in this console and are betting a lot on its success. In addition, their Nintendo DS hand held gaming console has also done reasonably well.

However, the fact that their GameCube console has reached the end of its life, the company has reported disappointing revenue figures. Nintendo saw its profits halve over the six months to September. They have also suffered falling profits due to massive cuts in the prices of their Nintendo DS console after Sony launched their Playstation Portable earlier this year.

With Sony due to launch their Playstation 2 next year and Microsoft Xbox 360 seeing a blockbuster launch, it becomes even more important for Nintendo to do a hell of a job with their Revolution gaming console. Nintendo has revealed that their Revolution gaming console should be out before the start of the holiday season next year. However, that might be a little too late for the company to capture any market, which would already have consumed two mega launches in Xbox 360 and Sony PS 3.

Nintendo is now expecting full-year operating profits to come in at about ¥90bn, down from ¥111.5bn last year.