While December 
was a grim month overall for the video game industry, it was particularly brutal for Nintendo. Wii hardware sales were down a whopping 55 percent compared to a year ago, a clear sign that interest in the once-hot console has dried up.
All of the major consoles saw sales declines last month, but they were muted compared to Nintendo’s drop. The Xbox 360 was off 8 percent and the PlayStation 3 saw sales fall 22 percent.
Shigeru Miyamoto 
is royalty in the video game world. There is no other game creator whose name instantly commands respect and awe — and to whom a company’s fortune is so indebted.
Now, the man who created such classic franchises as Donkey Kong, Mario and The Legend of Zelda says he intends to step back from his current role to focus on more personal projects.
The video game 
industry’s top developer seems ready to step back from game making.
Shiergu Miyamoto, creator of Donkey Kong, Mario and The Legend of Zelda, has told Wired.com that he plans to step away from major game development and focus instead on smaller projects and training younger developers. He does not, however, plan to leave the company.
To say that 
Nintendo got off to a rocky start with the 3DS is something of an understatement. After a slight surge when it went on sale, consumer interest nose-dived, forcing the company to slash pricesand admit to being guided by hubris.
These days, though, things are looking up for the handheld system. It recently surpassed the first year sales totals of the DS system, and life to date system sales are at a solid 3 million. By February, the company expects to cross the 4 million mark.
Oh PETA, you 
crazy kids. First, you get the gaming world up in arms by squaring off against one of its most-loved characters. Then, when the backlash hits, you quickly claim the whole thing was “tongue-in-cheek.”
After slamming Nintendo icon Mario for wearing a ‘Tanooki’ suit in his latest game, the animal rights organization says the outcry, which included the creation of a disturbing parody video game called “Super Tanooki Skin 2D,” was just a publicity stunt.
The initial criticisms 
surrounding Nintendo’s 3DS handheld were pretty straightforward: The price was too high and there was a paucity of good games.
Nintendo took care of the pricing problem in August. Now, it’s taking on the quality concerns.
Super Mario 3D Land, which hit shelves earlier this week, combines elements from the classic 2D side-scrolling Mario games as well as more recent free-roaming 3D Mario titles, plus it brings back the much-loved Tanooki suit from Super Mario Bros. 3. And critics are cheering.
The news that 
Nintendo will lose money this fiscal year for the first time in its history as a publicly traded company wasn’t entirely unexpected, but that didn’t make it any less shocking.
It was a rapid fall from the top of the gaming hill for the company, hastened by weak sales of the Wii and DS and the tepid reception to the 3DS. Investors weren’t happy, raising some questions about whether president Satoru Iwata’s job might be at risk.
Though the 
company has had its share of ups and downs over the years, Nintendo has been a profitable company for as long as it has been reporting earnings.
That streak will end this year.
There’s a hard 
and fast rule in the gaming world: Never bet against Nintendo. That’s still true, despite the Wii’s ugly tumble from the top and the underwhelming rollout of the 3DS – but if you’re a gambler, this might be the time to hedge those bets.
The Wii U, Nintendo’s own next big wager, is likely still more than a year away from hitting stores, but the number of hurdles it’s going to have to clear in order for it to be a success are growing at an alarming rate.
Nintendo is turning 
to Hollywood to help bolster the 3D content for its 3DS handheld gaming system.
The game maker has announced partnerships with DreamWorks Animation for a pair of timed-exclusive digital shorts as well as with 3net, the joint venture between Discovery, Sony and Imax. Content from both studios became available this morning.
Chris Morris: Journalist 