If you follow the news wires, you'll see story after story of Nintendo's runaway success in Japan with both the Nintendo DS and Wii. However, the picture is not all rosy, according to toy maker Tomy.

Tomy today cut its net profit forecast by two thirds, pinning its sales woes on reduced demand for its toys and card games in the face of the Nintendo juggernaut.

However, the company also left its sales forecast unchanged, as it apparently has a unit that wholesales Nintendo products. Unfortunately for Tomy, it seems the unit is not nearly as profitable as its toy business.