Nintendo's numbers are vastly down from last year. We all knew that was coming, and I don't think anyone is surprised.
I do think it's important to point out, however, that last year Nintendo brought in a net income (profit) of $1.12 billion, on a total revenue of $2.60 billion. That's a single, non-holiday quarter. Nintendo turned a profit of roughly a dollar on every $2.50 they made in revenue. (Try comparing the return on investment to Nintendo's competitors in this industry - it's not pretty.) Did anyone think they could keep up those insanely good figures on a permanent basis? It simply was not possible to continue to perform at that level. The Nintendo finances this quarter are merely "good" instead of "spectacular."
While I realize this is dangerously close to spinning, I do think it's important we consider the context in which "down 60%" occurs.
End of 2008 totals: Wii 42m, 360 24m, PS3 18.5m (made Jan. 4, 2008)
