Update:  Nintendo expects sales for the forthcoming Wii U to hit 5.5 million units by end of the fiscal year, with Wii hardware sales contributing an additional 5 million units.  The company also forecasts Wii U software sales of 24 million units.

Nintendo today has revised its annual profit and sales forecasts downward thanks to the larger than expected loss the company recorded for the first half of its current fiscal year.  Weak overseas 3DS sales and Wii U production costs play their part in dampening spirits at Nintendo.  In fact, Nintendo expects to sell the Wii U at a loss once it launches starting next month.

The company confirms it has reduced its profit forecast to some ¥6 billion ($75 million USD), a 70 percent reduction from its previous estimate of ¥20 billion ($251 million USD) in net income.

The console giant also saw fit to reduce both its annual 3DS hardware sales forecast by 5.4 percent to 17.5 million units, and its annual 3DS software unit sales by 4.1 percent.

As potential consumers are becoming increasingly enamored with playing games for free (or nearly free) on smartphones they already own, President and CEO Satoru Iwata acknowledges to reporters that Nintendo must strive more than ever to "make games that smartphones or tablets can't do."