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Nintendo's first-half profits dropped 21% for the period ending September 30. The company cites sluggish GameCube sales and slower US demand for the decline. Reuters writes: "Nintendo said last month that it believed GameCube's life was nearing an end, while margins have been hurt by hefty development costs for Revolution."

In lieu of the drop, the company slightly cut DS and GameCube forecasts for the full-year while raising Game Boy forecasts due to strong demand for the Game Boy Micro.

Many argue Nintendo to be the most profitable console manufacturer out of the big three, but hits like this can't help. What could change this? They've got the portable market down to a science, but what does the company need to do on the console front to pose a threat to Sony and Microsoft?

This article was originally published on Joystiq.

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