Reuters have done a report on Nintendo's sales, and they are not good.

The Reuters article discussing Nintendo's sales can be found below.

TOKYO, May 22 (Reuters) - Japanese video game maker Nintendo Co Ltd 7974.OS said on Thursday its group net profit fell 36.8 percent in the latest business year as stiff competition in the industry hurt sales of its flagship GameCube console and games. Group net profit for the year ended March 31 totalled 67.27 billion yen ($572.1 million).

The weak results were not surprising since the company warned in April that its net profit would come in 18 percent below its November target of 80 billion yen because of slack demand for its GameCube machine and software.

Nintendo's once-dominant position in the video game console business has been hacked away by rival Sony Corp 6758.T .

Sony's PlayStation 2, with more than 50 million units shipped, occupies more than five times as many homes as Nintendo's GameCube. PlayStation has also handily outsold Microsoft Corp's MSFT.O Xbox console.

Nintendo also faces a formidable challenge from Sony on the handheld devices front, Nintendo's key earnings driver.

Sony last week unveiled plans to launch a portable gaming device, the "PSP", by the end of 2004, heaping further pressure on the creator of the Mario Brothers and Pokemon titles.

Nintendo's shares have shed about 12 percent since Sony's announcement.

For the year ahead, Kyoto-based Nintendo forecast a group net profit of 65 billion yen, far below analysts expectations for a profit of 95 billion yen. ($1=117.58 yen)

Industry analysts at Reuters have written articles on the matter. They can be found over at Reuters.