Nintendo DS and Wii sales dropped significantly in the six months leading up to September 2010.
Nintendo sold 11.7 million DS units worldwide in the six months leading up to 30th September 2009. In the same period this year, it sold 6.69 million units Ė a drop of nearly a half.
The Wii suffered a less dramatic drop - sales were down from 5.75 million to 4.97.
Net sales fell to 363.2 billion yen from 548.1 billion yen. Wii software dropped from 76.2 million to 65.2 million. Global DS software sales fell from 71.2 million to 54.8 million.
As a result, Nintendo posted a 2 billion yen net income loss for the six month period compared to a 69.5 billion yen profit in 2009.
While the results are sure to raise eyebrows, they come as no surprise. The DS is nearing its sixth year of existence, and the planned March 2011 launch of its successor, the 3DS, is no doubt putting many a potential buyer off.
And earlier this month Nintendo refused to attribute low sales of Wii and DS games solely to piracy.
CEO Satoru Iwata explained, "Even with piracy, as long as we can create products which can attract attention from many consumers and which can greatly entertain them, that software can make it to the number one position of the hit software sales chart.
"So, we would like to consider it from both perspectives simultaneously. It is true there is always the influence of piracy, but it is important for us to increase the number of our consumers who are willing to shell out their money to purchase our products."
The 3DS launches in Japan on 26th February 2011 before heading to Europe and the USA shortly thereafter.