Nintendo cuts profit outlook despite Pokemon GO success

Nintendo has cut its sales and operating profit outlook for the year as the strength in the value of the yen hits company earnings.

The unanticipated popularity of the Pokemon GO smartphone game had raised expectations of a renaissance at the Japanese firm, but this failed to make up for sliding sales of 3DS and Wii U games.

"Pokemon GO got a bigger reception than we had expected," said Nintendo's president, Tatsumi Kimishima.

Mr Kimishima said that earnings from affiliates including the Pokemon-related businesses totalled 12bn yen for the quarter.

However, the company posted a 812m yen loss in the three months to 30 September, compared to a profit of 7.63bn yen profit for the same period last year.

Nintendo has lowered its operating profit forecast for the year through to March 2017 to 30bn yen ($288m), down from the previous outlook of 45bn yen in July.

The results show a limited impact from the initial success of Pokemon Go, which is partially owned by Nintendo, but the company's shares are still up more than 45% for the year.

Attentions are now focused on the company's first game for iPhones - Super Mario Run, which is due to debut in December.

The videogame maker is under pressure to perform from investors, as it faces slowing sales on existing platforms.