Nintendo is in real trouble, this is only the beginning. The huge decline in 3DS sales should be a warning shot. $200 handhelds w/ $40 games are a joke in 2011. Wii, a novelty that rode the back of a huge economic bubble, was probably the worst thing to happen to them long term - it gave the company confidence to stay on its insular course.

Nintendo is too proud to go software-only. They need a hardware product in every home in order to perpetuate their real strength: characters and brands. Wii2 is going to be a huge flop in this recession. Don't bet on Nintendo.