The holiday season didn’t go as well as Nintendo had hoped. “Nintendo Co. slashed its sales outlook in the wake of disappointing holiday demand for its new Wii U videogame console, which it had been banking on to rekindle consumer excitement,” reports the Wall Street Journal. Wii U was launched last November and was Nintendo’s first new videogame console in six years.

“The revised sales view is the latest dose of bad news for Nintendo, coming off its first annual loss in more than three decades,” writes WSJ. It lowered its full-year sales outlook for a second straight quarter, cutting the overall projection by 17 percent.

“A poor holiday performance is devastating for Nintendo as the company generates more revenue in that three-month period to December than it does in the other three quarters combined,” notes the article.

Because the Wii U is a dedicated game console with software limited to itself only, it represents Nintendo’s attempt to “extend the life of the videogame industry’s traditional business model at a time when the smartphones and tablet computers are opening the floodgates for inexpensive or free-to-play titles for a wide range of devices.”

That changing landscape is also hurting sales of Nintendo’s 3DS, which saw its prices slashed in 2011 after a disappointing launch.