Japanese firm Nintendo said that its first half profits fell by over 50 percent and said worse was to come, because sales of its popular Wii console weren't that buoyant.
Sales of the Wii fell to 5.75 million from over 10 million, but Nintendo said a lack of new software titles was causing demand to fall.
Last month Nintendo slashed the price of the console by one fifth in the USA.
However, Nintendo does not yet need to weep too much. It made a net profit of 69.5 billion yen but it had said it was likely to make a profit of 100 billion yen for the period.
The drop in profitability, however, may force prices down again - what the Wii really needs are new games that will drive sales of the consoles.