It appears like Nintendo's horses turned back into mice and its coach into pumpkins as the company can't seem to catch a break these days. Namely, Nintendo has reported a 10 percent year-on-year drop in revenue and yet another loss, but the real dangers actually lie ahead.

Nintendo generated around $1.08 billion in revenue from April to June 30, 2012, which is 9.7 percent less than in Q2 2011. The company's net loss ended up at about $220 million, although it can be considered progress when compared to the $328 million loss in Q2 2011.  

Nintendo's sales seem to be sinking fast as well and the company has managed to sell 710,000 Wii consoles in Q2 2012. This accounts to less than half of what the company managed to sell in Q2 2011. 3DS sales fared better though and the company sold 1.34 million units.

Apparently, the company is looking for a quick fix with 3DS' bigger brother - the 3DS XL. As the name suggests, it will come with a bigger screen. Unfortunately, mobile gaming has been seriously moving away from dedicated portable gaming devices, so we'll see whether that goes as the company hopes.

The Wii U should come in time to save Nintendo's behind, but the company better start planning ahead. Unless that happens, Microsoft's and Sony's next gen consoles may just be the nails in the company's coffin.  

More here.