Nintendo has admitted that sales of the Nintendo Wii U will have a 'negative impact on Nintendo's profits early after the launch' due to the fact the company will initially be selling the console at a loss.

Thanks to customer expectations Nintendo has conceded that the only way to sell the Wii U will initially be to sell the product at a loss thus further denting their already suffering sales after it was revealed the company has had to cut its predicted annual profits by a third.

In the quarterly report Nintendo President Satoru Iwata did however state that the company had a plan to restore business as usual saying,

"We will make best efforts to retrieve "Nintendo-like" profits by: boosting sales of the Nintendo 3DS system as a sound successor to Nintendo DS both in Japan and overseas during the year-end sales season,"

Nintendo's Wii U console is expected to be one of the big hits of Christmas boasting an entirely new way of playing games thanks to its touchscreen controller which allows multiple input types.

Going for a much larger market share the Wii U has already secured some blockbuster adult titles not before seen on a Nintendo console including Batman: Arkham City, Call of Duty: Black Ops 2 and Assassin's Creed 3.

Source: Nintendo