Nintendo profits hit despite Pokemon Go popularity

The popularity of Pokemon Go has failed to stop Nintendo from issuing a profit warning, which it blamed on poor Wii U sales and a strong yen. 

The Japanese video game maker said full-year operating profit would be about a third lower than expected at 30bn yen ($288m; £236m).

Sales fell 33% to 136.8bn yen ($1.3bn) for the six months to September.

However, net profit more than trebled after Nintendo sold a controlling stake in a US baseball team.

The company had owned the Seattle Mariners since the early 1990s.

The global success of the Pokemon Go app released earlier this year has not helped Nintendo's bottom line as it was developed and distributed by US-based Niantic, a spinoff of Google.

 

Nintendo owns a stake in Niantic and a one-third share of the Pokemon Company, which receives licensing fees for the brand.

Last week, Nintendo said its next games device would be a handheld, portable device that doubles up as a home console.

The Nintendo Switch, which looks like a tablet computer with controllers attached to its sides, is expected to go on sale in March.

'Last shot'

Reviews have been mixed, with some describing the new device as disappointing.

The Switch could be Nintendo's "last shot" at selling a home console, said Paul Jackson, of the Ovum consultancy.

"The Wii U was a car crash, basically. They fudged the communication and confused everybody with the controller and what the screen was for. As a result it sold about a tenth of what the original Wii sold."

The Wii U was heavily outsold by Sony's PS4 and Microsoft's Xbox One, although Nintendo has enjoyed success with its handheld 3DS device.

Nintendo reported a 5.95bn yen operating loss for the half year, a sharp reversal from a 9bn yen operating profit for the same period in 2015.

Japanese exporters have been hit hard by a strengthening yen in recent months, which has cut their profits.

Shares in Nintendo have fallen 8% in the past month, but are up 46% since the start of the year.