In yet another blow to the video game giant, Nintendo has listed their second straight year of falling annual profits. The company announced on Monday that its net profit from the fiscal year that ended on March 31st fell 66 percent to $947 million and released sales revenue figures of $12.31 billion representing a 29 percent decline.

Even sales of the new 3-D handheld haven’t come to save Nintendo from falling interest in spite of the initial hype surrounding the devices. Cnet News is reporting that the game company’s estimates on Wii sales as well as DS have also been cut as consumer attention wanes,

During its last fiscal year, Nintendo sold over 15 million Wii units worldwide, down from the 20 million it sold during the prior fiscal year. DS sales were down from 27 million to 17 million units sold last year. Nintendo expects to sell just 13 million Wii units and 11 million DS units worldwide during its current fiscal year.

Nintendo even disappointed on 3DS sales. According to the company, it sold 3.61 million 3DS units before its fiscal year ended. Earlier this year, the company said that it expected to sell 4 million units worldwide by the end of the fiscal year. Looking ahead, the company said it hopes to sell 16 million 3DS units during the current fiscal year.

And, with Japan as a significant market for the 3DS and other game systems, the recent earthquake really did a number on their expected consumer base. People tend to spend money more frugally in the wake of a disasters and entertainment like video games often suffer. In spite of that, their previous game consoles did come to market outside of last year’s holiday season and have insinuated themselves quite thoroughly. Being less than 10 percent off the sales estimate for the 3DS probably isn’t the bad omen it seems to be in light of recent events.

The CNet News article goes on to reveal that Nintendo might have an ace up their sleeve with rumors surrounding the release of their next-gen gaming console. The system is expected to be unveiled at the E3 gaming expo in June with a release date set in 2012.

Speculation hanging over the controller seems to be gripping the imaginations of technologists as well as consumers, which is rumored to potentially sport its own screen—similar to having a build in handheld console for “remote controlling” the primary console. It’s also expected that the controllers may themselves be console devices that could be played away from the main console.

I can almost imagine Nintendo releasing a series of games that families on the go can play together via Internet connections or 3G together between consoles and handhelds while far apart.

The upcoming hardware from Nintendo bears the rumored name “Stream” and could retail for between $350 and $400 when it launches.

But will it come in time to save the company from this steady decline? I sure hope so, Nintendo has been a huge innovator and momentous landmark in the video game ecology.