Pundits are quick to proclaim that Nintendo is on the ropes, that they'll pull out of the hardware market and focus on software like former rival Sega. Nintendo denies the possibility, and a new report has been released that proves just that.

In a 600 page report released by DFC Intelligence entitled "Market Leaders in the Video Game and Interactive Entertainment Industry", they calculate the gross profit each of the video game powerhouses has made, and how much went into the bottom line. While Nintendo has made close to half of what Sony has in revenue, Nintendo has pocketed more money by keeping careful tabs on the bottom line.

The report goes on to say that this attitude might have cost Nintendo, as the market has evolved and Nintendo has remained as focused as ever. It's mentioned that the same fourteen-year-olds that Nintendo considers its core market are more interested in games like Grand Theft Auto...games parents wouldn't want those kids playing.

The question is left open ... what does Nintendo need to do in the next generation to compete? Will Nintendo shift its focus and attempt to be the "it" console with the successor to GameCube, or will they remain focused on the family market? The report acknowledges that Nintendo's focus has shifted slightly with games like Eternal Darkness and Metroid Prime and by making deals with companies like Namco, Capcom and Square/Enix.

Thanks to Forum member "nolimit19" for the tip!