The strength of the YEN has caused Nintendo to cut its operating income forecasts by 15.9 per cent.

The news comes as Nintendo reports its Q3 financial results for the three months to the end of 2008, which saw net sales increase by 17 per cent to reach 1.5 trillion YEN ($16.5 billion) – and operating income grow by 21 per cent to hit 501.3 billion YEN.

The platform holder now expects to see operating income of 530 billion YEN (£4.1 billion), down from the previously estimated 630 billion YEN, for the financial year ending March 31st. Net income forecasts has been reduced nine per cent, down to 1.8 trillion Yen ($20 million) from two trillion YEN.

Nintendo states that the reductions in estimates are down to large exchange rate losses, caused by the strong appreciation of the YEN.

The firm has also revised its expected console sales for the financial year ending March 31st, anticipating Wii sales will hit 26.5 million units, down from 27.5 million. However, DS sales have been revised up from 30.5 million consoles to 31.5 million.

The firm has also reported life-to-date sales of its Wii and DS hardware. The Wii has now sold 44.96 million units worldwide, while the DS has sold more than 96 million consoles.