Sony and Nintendo reported disappointing numbers in Japan overnight.

Nintendo Wii sales dropped 57% year over year from 5.17 million to 2.23 million units worldwide.  Sales of PlayStation 3 dropped 31% year over year from 1.6 million to 1.1 million units worldwide.  PS3 software sales were down 35% in that same period.  The PlayStation Portable and PlayStation 2 also saw significant sales reductions from last year.

It's more bad news for the video game industry to go along with warnings from Take Two Interactive, Inc. and Ubisoft in France.  THQ, Inc., which reported this week, posted healthy gains but also managed to disappoint investors as the stock fell nearly 20%.

Electronic Arts, Activision, Inc., and Gamestop, Inc., have not reported earnings yet.