Japanese game-maker Nintendo, which owns a stake in the developer of the wildly popular "Pokemon Go" mobile game, said on Wednesday that it had slumped to an operating loss in the quarter that ended June 30, 2016.
Nintendo's group operating loss in the April-June quarter stood at 5.13 billion yen ($47.33 million), compared to an operating profit of 1.15 billion yen in the same period a year earlier.
Net sales dropped 31.3 percent to about 62 billion yen, compared to 90.22 billion yen a year ago.
The Kyoto-based company said a combination of a decline in gaming hardware sales, fall in download sales as well as a stronger Japanese yen affected its earnings. Nintendo said yen strength resulted in exchange losses totaling 35 billion yen.
For the full fiscal 2017, Nintendo said it expects its operating profit to increase 36.9 percent to 45 billion yen.
Investor focus on the storied gaming company has been heavy in recent weeks, as it reaped the rewards of "Pokemon Go."
Nintendo, which produces the Wii gaming console and has created famed video game characters such as Mario, has seen its shares rocket since the app's launch in the U.S., Australia and New Zealand on July 6, reaching a high of 32,700 yen on July 19 as investors and analysts hoped for a boost to Nintendo earnings.
Nintendo owns stakes in The Pokemon Company, which owns the Pokemon characters, as well as in Niantic, the U.S. gaming company that created the game.
Since the initial boost, however, the stock has been on a roller-coaster ride, amid rumors over trouble with the Japan launch of the game before finally launching in the country on July 22.
A number of investors have increased their short positions on the stock, in part due to an announcement from Nintendo on Friday in which it said "Pokemon Go" would have a limited impact on its income.