Nintendo (OTC: NTDOY), which battles it out with Sony (NYSE: SNE) and Microsoft (NASDAQ: MSFT) in the console wars, has two huge assets to its name: the Wii gaming system and the handheld Nintendo DS. Both of those products are powerhouses and have incredible brand equities. They drive earnings results. I think they're pretty neat, too. However, Nintendo may find itself having a little bit of trouble, at least in the short term, due to a currency issue.

According to this article, Nintendo saw its top line for its fiscal first half expand by 17%. The company's net profit rose over 9%. The Wii console sure is making toast of the PlayStation 3 and the Xbox 360. And both the Wii and DS should sell well during the holiday season. But, the article I cited mentioned a sobering fact: the yen has strengthened. Because of this, Nintendo's bottom line might not grow as much as previously expected. Of course, currencies are volatile instruments at times, and considering the financial chaos we're currently experiencing, who knows where the yen will be in the coming months. It seems clear, though, that there is currency risk here.

So, where does this leave investors? Well, Nintendo's ADR's are priced, as of this writing, at $39.53. The 52-week low is $32 and the 52-week high is $78.50. Do I want to buy Nintendo now? No. With market fluctuations, a looming global recession, and this reported currency element, I think smart investors would wait for a pullback. I am bullish on Nintendo as a long-term play on video games. It has a great portfolio of intellectual properties. Now, however, may not be the time to start a position. If it goes back to the 52-week low, that could be the time to look, as it might offer a higher margin of safety.

Disclosure: I don't own any company mentioned; positions can change at any time.