According to various news outlets, it seems like Nintendo was going to post a 100 billion yen loss from the past quarter. Even though it wasn't that amount, it still was a "70.3 billion yen ($925 million) for the six months through September," according to other news outlets.

This doesn't surprise me, and no I'm not gonna bash Nintendo.

Let me explain.

Back before the Nintendo Wii came out, Nintendo was Suffering from a not so stellar sixth generation of consoles era, as the Gamecube lagged behind sales of it's competitors.

Luckily, Nintendo was still riding high from the their handheld market hold, with the GBA and then the transition to the Nintendo DS (I loved my portable tank!)

So, to combat Sony and Microsoft and their much high prices consoles, Nintendo decided that the best bay to do that is in price. The Wii would come in at much cheaper it's competitors prices, not have the higher end of features of it's competitors, be packed with a game to boot, and the games itself would be ten dollars or more cheaper then a brand new copy of a ps3 or Xbox game.

And boy did it work. Whether you love or hate the Wii, for the past 4 or so years Nintendo sold Wii's like hot cakes, as well as their hot DS line. And every year they have posted major profit except for this year.

But not this time.

It's a transition time for them. In Both the Portable and Console markets, which is gonna put huge pressure on them.

The Wii was pretty much designed to have a 4 year stellar cycle, which it did. It sold consoles and accessories like no tomorrow, and made a lot of profit. The time for it though is over, as the system, whether you want to admit it or not, is out of date compared to how much every other system has progressed. Now, Nintendo is prepping their new console, not making much effort into their first party lineup at this point to prepare for the next year launch of Wii U, which is probably going to extend the kink in their console sales for possibly another year.

The other problem, is one they didn't expect. The 3DS to be struggling so much. Since it's initial launch, sales of the 3DS have lagged due to canceled titles, postponed titles, and general lack of games. Some were pushed off by the initial price, especially with the much high spec PS Vita coming in at the same price of $250 (wifi model). Nintendo has been fighting hard with the huge price cut to $169 bucks, and then the huge Nintendo 3DS Ambassadors Program for initial buyers with the 10 free NES and 10 free GBA games.

Nintendo expected the 3DS to provide a buffer for the next year's launch with the Wii U, but without it, well it's lead to a huge loss both ways.

Though will Nintendo go the way of the SEGA?

Now that's way too early to jump to that conclusion. Nintendo has been around an AWFUL LONG TIME. Nintendo might make some silly decesions in my point of view but they always seem to bounce back. So while this year has been a bad one for Nintendo, I wouldn't be surprised If Nintendo heads to a great one next year.