It is actually a bad sign for Nintendo. They haven't been selling as much in Japan lately and the PS3 has been outselling it for a little while. Also the Xbox 360 didn't do that low compared to the Wii. I think the Wii has saturated Japan and won't see sales pick up again if they don't bring out some really big games, stuff that appeals to traditional gamers. I think that's part of the reason the PS3 is picking up and 360 doing alright too.
I wouldn't be surprised if the same holds true elsewhere in the world. There are only so many casual gamers. Nintendo really does need to focus on the hardcore more to keep a big lead. Don't get me wrong, Nintendo has done great and I don't expect them to lose their overall lead.
I'll come up with something better eventually...
