Yesterday we learned that Nintendo is expecting to sell a stagerring 5.5 million Wii U units in the year ending March 31 of the coming year, to which Michael Patcher commented on as being an “unrealistic” target.

CVG now report that Nintendo has suggested in a financial results briefing that the Wii U will be sold at a loss. Nintendo president Satoru Iwata exact words were that the Wii U hardware will have “a negative impact” on the Nintendo’s profits during its launch period

“Rather than determining a price based on its manufacturing cost, we selected one that consumers would consider to be reasonable,” he said.

Iwata also confirmed that the 3DS is now turning a profit, but deemed the handheld’s performance  as “weaker than expected” in overseas markets.