Investment banking and securities firm Goldman Sachs is more or less giving up on Google’s Nexus One.  A note Goldman Sachs published this week indicates that it’s cut its 2010 sales forecast by a whopping 71.4 percent.

As reported by the Wall Street Journal, the note stated, "We previously estimated that Google might sell 3.5 mn Nexus One units in 2010."  Now, after seeing some data from Flurry, "We forecast that Google sells 1.0 mn Nexus One units in FY2010 . . ."

Goldman Sachs doesn’t have much confidence that Google will be more successful in the future, either.  The firm believes Google will sell additional devices as it "rolls out a second Nexus handset, markets it more aggressively, and makes it available offline," but nothing like 3.5 million was mentioned.

Instead, Goldman Sachs predicted "that Google sells 2 mn handsets per year in 2011 and future years."

This is fairly bad news for the search giant, given that the Nexus One was supposed to make so much of a splash.  The online-only sales model and lack of advertising may have been meant to save Google huge amounts of money, too.