Nintendo has been rolling in the Wii dough for awhile now, but it looks like their cash printing machine may be slowing. According to an earnings report filed today, the Big N posted a 66 percent drop in quarterly operating profit due to “slowing demand for its Wii console and a stronger yen.”

What’s surprising is how fast demand has fallen. Nintendo maintained that it would sell 26 million Wii consoles before the year was out alongside 30 million DS handhelds, so we will see what happens. DS sales have also slowed due to “increased competition in the handheld business from Apple’s iPhone.”

It’s interesting that they would admit that the iPhone is a direct competitor. But what do they intend to do about it?

[Engadget]