It's actually a rather tricky situation.
See, after the sales the Wii and the DS brought in, expectations from investors were very high. The thing is, Nintendo seems to go after the demographic people say they "lost". It's common for many people to say that the ones who play many of the mainstream HD releases are the same customers they had with the NES and SNES. This would refer to the huge demographic that plays online FPS games in consoles. I can't really say yes or no to this, because I don't have the means to do so.
It could also be related to the lack of confidence investors displayed after the WiiU's announcement and the sales of the 3DS, which while still good, were below expectations and started to lower after launch day. The DS outselling it could just mean a slow start, after all, the same thing happened to the PS3 with the PS2, and its sales have improved a lot with time.
I don't think the investor's words mean or imply anything at the moment. They said the same thing about the Wii, and look at how that turned out.
The sales HAVE lowered recently for the Wii, but the article already explains it here:
And due to a lack of software and increasingly outdated tech, Wii sales have positively floundered. Analysts have noted that, compared to last June, Wii software sales dipped a stunning 75%, and monthly sales of the system itself are routinely eclipsed by Microsoft's Xbox 360. Based on the rest of 2011's Wii lineup -- highlighted by The Legend of Zelda: Skyward Sword, a new Kirby game and very little else - sales are likely going to keep dropping until the company releases their next hopeful hit, the Wii U.
The software drought is especially true. Other than Skyward Sword, Kirby and Rythm Heaven (which isn't really expected to do that well) they have no other games that interest their fans. They also seem reluctant to bring them after their response to Operation Rainfall.
So, yes, sales are slipping. But then again, Skyward Sword, Kirby and the 3DS games coming out, along with the WiiU (if it raises enough interest) can keep Nintendo afloat, or so I think. As bad as the situation currently is for them, it could always be little more than just a dark spot.
