Nintendo lowers forecast from 55 billion yen profit to 25 billion yen loss

[sth88]

Soundwave said:

DanneSandin said:
Well, 9m Wii U's were never feasible... But How could the beastly 3DS not do more than 13.5m?! THAT'S the big question?! It has Pokémon, Monster Hunter AND Zelda this year alone! Those games alone should pull 15m... wtf?

Something definitely needs to change at Nintendo.

It's time to admit smartphones/tablets have completely changed the market. There's no denying it anymore. Even when kids are getting a 3DS, I believe they're buying maybe 1 or 2 games tops at $40. The $1 pricing on iOS/Android games I think has crippled the portable software market. 

Exactly.  Mobile devices have caused the market for dedicated handhelds to shrink substantially.  The market hasn't disappeared entirely, of course; there's still plenty left to support the 3DS.  But Nintendo can no longer rake in the kind of crazy cash that they have been able to in previous handheld generations.  They can still make money from it, but to keep the company profitable their home console must be able to pull it's own weight.