Video game system maker Nintendo (PINK:NTDOY) announced that it is cutting its sales forecasts for the Wii U console system.
The company cut its projections for the console 27%, The Financial Times reported. The number of systems it expects to sell is being lowered from 5.5 million to 4 million. It also lowered its sales forecasts for the 3DS 13% and its DS system 8%.
As a company, Nintendo was betting big on the Wii U — the follow-up system to its best-selling Wii console — but it hasn’t sold as well as hoped. The console has seen significant competition from smartphones and tablet computers in the game market.
Overall, sales of video game hardware, software and accessories dropped 22% in December compared to the prior December. Nintendo has been harder hit by this shift as its system is targeted as the casual game market.
Last year, the company posted its first annual loss in five decades. It attributed the loss to weaker-than-expected sales and the strengthening of the yen.