Reduced revenue and torrid exchange rates hits Nintendo hard for its half-year earnings...

Nintendo has recorded a 70.2 billion yen loss for the first half of the fiscal year running April through September. The result was double the 35 billion yen loss the company predicted back in July.

Total sales for the period stood at 215 billion yen, also down from a previous forecast of 240 billion. For the full year, Nintendo has revised projected sales down from 900 billion yen to 790 billion. Meanwhile, the company expects to post its first yearly net loss since 1981; revising a 20 billion yen profit down to a 20 billion yen loss.

The dramatic 3DS price cut has perhaps been unhelpful - it is understood Nintendo is now making a small loss on each system sold. But it seems the killer blow this year has been the currency climate. With the yen still abnormally strong, and both the dollar and Euro still very weak, it is no-win situation for a Japanese company who receives 80% of its sales from overseas. Over 50 billion yen was lost in the exchange process.

Nintendo is due to give its customary stockholder talk tomorrow.