Nintendo shares have suffered a sharp fall after the company warned that its profits over the summer would be 77% lower than a year before.

The maker of GameCube and GameBoy said it had been hit in the April to September period by a double whammy relating to the strengthening yen.

The currency's growing strength had cut the value - in yen terms - of Nintendo's foreign assets.

And it had made Nintendo products more expensive in export markets, so hitting sales.

Consequently, Nintendo has lowered its sales expectations for 2002/03.

It now expects to ship 17% fewer GameCubes and 21% fewer GameBoys.

Cheap shares?

Nintendo shares fell almost 7% to close at 12,840 yen.

"Shares in Nintendo may come under pressure in the short term, but that would provide a good buying opportunity," said Goldman Sachs analyst, Eri Sato.

So far this year, Nintendo's shares have lost 40% of their value.