It's pretty bad news when you consider all the facts.
Typically, the first few years console profits are relatively poor, as companies underprice their consoles and try to make money on the games, while waiting for components costs to go down.
Next, you have total until sales down pretty dramatically, and this with a price cut of 20%. That's pretty bad too. Plus, as you get more consoles out there, you'd expect your game sales to go up. You have a bigger installed base. Still more bad. I guess people don't use their Wiis that much.
It's not terrible, they're still making good money, but the handwriting is on the wall. They need to come up with a new console as the Wii atrophies, and then they can position it like Sony does the PS2, right now. Since the Wii was always obsolete anyway, and it's targeting casual gamers, it could have a long and successful life in that role. Clearly, its role as the Fleet Carrier is compromised, and going to get worse, especially if Sony makes another price cut, and with motion sensing devices imminent for their competitors. They really need to get moving with their next device, before it really starts to hurt.
Nex
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