Despite initial optimism over its latest gaming console, Nintendo is downsizing its forecast on sales for the Wii U. The announcement comes as a result of lagging unit sales during the holiday season.

In the three months to December, the Wii U sold approximately 3.06 million units. Its sales outlook for March 2013 has since been cut from 5.5 million to 4 million units. This changes the overall yearly fiscal prediction from 24 million consoles sold to 16 million.

The company also slashed its sales outlook for its handheld gaming device, the 3DS, expecting the console to now sell 15 million units, as opposed to a prior forecast of 17.5 million.

Six years ago, Nintendo released its popular Wii system and broadened the demographic of its gaming audience. While its latest devices have had lackluster sales, the company has raised its overall profit forecast from 6 billion to 14 billion yen.