BBC News Online: Business

GameBoy lifts Nintendo profits

GameCube is expected to boost profits further

Cheaper liquid crystal screens and computer chips helped the company keep its costs down, further fuelling profits for the world's second largest home video game maker.

The strong profit figures were revealed soon after its launch of the home game console GameCube that clocked up US sales of $100m (£70m) on its first day on the market.

The group's net profits rose 14.4% to 34.35bn Japanese yen (£197m; $280m) during the first six months of the fiscal year, from 30bn yen a year earlier.

Sales rose 18.4% to 225.72bn yen.

The results exceeded company predictions made in the summer, but were in line with analysts' forecasts.

Nintendo shares fell 2% to close at 20,970 yen ahead of the announcement.

GameCube

Nintendo has raised its GameCube production target for the US market by 200,000 units following a warm welcome from consumers when it was launched last Sunday.

The group aims to sell 1.3 million GameCubes in North America before the new year.

A survey by the investment bank Goldman Sachs showed that more than half of the 49 retailers asked are struggling to meet demand for the GameCube.