Nintendo has slashed its fiscal year sales forecast for the Wii U, another potentially troubling sign for the video game console.
In a statement released Friday, Nintendo says it has revised its sales forecast for the Wii U to 2.8 million sold during the fiscal year between April 2013 and this March. The company’s original forecast had Wii U sales at 9 million.
“Sales in the U.S. and European markets in which we entered the year-end sales season with a hardware markdown were significantly lower than our original forecasts, with both hardware and software sales experiencing a huge gap from their targets,” said Nintendo President Satoru Iwata.
Nintendo also forecasts an operating loss of 35 billion yen, revised from a 100 billion profit.
Launched in November 2012, the Wii U has struggled to capture the interest of video game players following the incredible success of its predecessor, the Wii.
As of September 30, Nintendo sold 3.91 million Wii U consoles worldwide, compared with 13 million for the Wii during the same time frame when it launched in 2006.
Meanwhile, Nintendo has faced increased competition with the arrivals of new consoles from Sony and Microsoft. Through the end of last year, Sony sold 4.2 million PlayStation 4 consoles worldwide, while Microsoft says global Xbox One sales topped 3 million.
Nintendo has launched a series of key titles from its first-party library in hopes of sparking momentum. Late last year, the company released Super Mario 3D World, while new versions of hit series such as Mario Kart and Super Smash Bros. arrive this year. Last fall, the company also cut the price of the Wii U to $299.99.
