Strong yen leading to a cut in sales has led to an 18% decline in profit for Nintendo Co.

Nintendo, the Kyoto, Japan-based maker of the popular Wii game and DS handheld device, has performed better than analyst expectations. The company has stated that net profit fell to 212.5 billion yen ($2.35 billion) for the first nine months of the fiscal year.

Though the company had reposted a 21 percent rise in operating profit for the October-December quarter. The profit was a result of strong holiday sales of its Wii game console and DS handheld game player. This gave a chance Nintendo to bounce back in times an economic slump.

Despite a glossy picture in the gloomy atmosphere, the company has declared a cut its profit forecast for the year to March by a much larger-than-expected 16 percent. At the same time it has also decreased its sales target for the Wii. The simultaneous moves are a cause of worry for investors.

However, Nintendo's profit forecast of 530 billion yen ($5.9 billion) for the year to March would still be a record figure. This would be in contrast to Sony's biggest ever operating loss.

Nintendo's has adopted a strategy to broaden the gaming population by offering innovative but easy-to-play games. Perhaps this has been the reason why it has been able to outdo Sony ever since its inception on 2006.