Via Next-Gen comes the reports that the video game industry is still seeing drops for this year’s first fiscal quarter on all fronts.

On one front you have Sony’s PlayStation Division actually improving their situation from previous years with smaller losses than before thanks to the PS3 hardware selling more and being cheaper to produce now.

Capcom managed to post a profit for Q1, but income came at a massive dive of 90.4% due to the massive underperformances of Lost Planet 2 and Monster Hunter Tri. If I remember correctly Capcom had expected Lost Planet 2 to sell in the millions in the long run which doesn’t look like it’ll be happening now.

Lastly Nintendo who had Wii hardware sales actually increase 3 million in one quarter compared to last year’s 2 million posted a rare quarterly loss of $288 million for Q1. They had a positive operating, but the slowing sales of a system in it’s sixth year on the market, smaller software sales on both platforms and the gamble they took with a hedge fund that they lost due to the exchange rates not being favorable to them hurt them.

Luckily, this drop may in fact push them to release the 3DS by the end of this year instead of “Around March 2011″ now. It took more than half a decade, but seeing that the handheld is now at 132 million units sold and DS HW are slowing down yes, finally everyone now does have a DS. – The Ben