Nintendo is one of the best known game companies in the world, and its game machines join the ranks of the best-selling consoles in the world. The Nintendo Wii U has raked in sales of over 10 million units, making it the third best-selling console, following Sony's PlayStation 4 and Microsoft's Xbox One. While this has been a milestone for the company, Nintendo is still on a rough road as earnings continue to fall.

A couple of years ago, the Nintendo Wii has consistently sold out. Now, the company is facing tepid demands for its latest portable console, the Nintendo 3DS. According to a Bloomberg report, sales of the device have been less than impressive, offsetting the strong sales of the hit game Super Mario Maker for the Wii U console. 

According to the report, Nintendo's profits have dropped to 3.2 billion yen, or $27 million, in the last three months ending in September this year. The figure is less than half of the estimated profit analysts have projected for the company, which falls on 7.3 billion yen. Bloomberg has compiled the analysts' estimates and has come up with the said amount as average. 

The shift to smartphone gaming has affected Nintendo's market, and even hit game titles like Super Mario Maker and Splatoon have not been able to help in increasing demands for the consoles. The company will be following the shift, and it has been announced that Nintendo will be introducing a new smartphone service for its games. "The smartphone game will have to come out pretty soon, so this would be a good time to announce it," said Yasuaki Kogure, chief investment officer at SBI Asset Management Co.  

Nintendo hopes to release the service by Dec. 31. As the holiday season approaches, Nintendo is still hopeful that it will have a positive effect on its earnings. "The year-end holiday season has an outsize impact on our annual earnings," Nintendo president Tatsumi Kimishima said.