Another Wiif for Nintendo

Nintendo warned last month that its first-half results would be lousy, and this morning the company delivered on that promise, posting its first half-year loss in seven years.

For the six months to September 30, the Japanese gaming giant reported a $24.7 million loss as sales of hardware and software slipped. Nintendo sold 6.69 million DS units during the half, down significantly from the 11.7 million it sold during the same period last year. And it sold fewer Wiis as well–4.97 million, down from the 5.75 million it shipped last year. On the software side, things were equally dismal. DS software sales declined to 54.84 million units from 71.15 million units in 2009; Wii software sales fell to 65.21 million units from 76.21 million units in the same period a year earlier.

The beginnings of an ugly trend for Nintendo, which is fast losing momentum in a motion-enhanced gaming market in which its rivals are gaining it. With Sony’s PlayStation Move motion controller already at market and Microsoft’s Kinect for XBox 360 (Project Natal) headed there next month, it is becoming increasingly clear that the Wii–now about four years old–needs a full-on refresh.