The drop is immense. I'd say a complete disaster to Nintendo.
If you guys look carefully at the last two pages of the financial report, that reads like the worst nightmare to any company. Not one, not a single one, aspect of Nintendo business grew from last year. Nothing. Everything, software and hardware, for all systems saw a drop in sales. Some by more than 3 times.
Nintendo may rightly blame the 3DS lukewarm reception. But it is painfully obvious from that report that the company was depending on it -- and on nothing else -- to come up with a buck. How Nintendo allowed itself into this position, I don't know. How they could expect to turn an handheld device they knew had some serious hardware limitations into something that could cover the gigantic financial hole they no doubt were seeing coming, I don't know.
Still, one thing is for sure, The Japanese market is still their most impressive market (if we consider their local share). They still dominate it. Despite their sales drop also there, their share loss was nowhere near as pronounced as it was in the tough European and American markets. Japan market may be able to help the company sustain itself through another bad year... if it restructures itself.