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Soundwave said:

It also probably strongly hints that Nintendo is unlikely to resort to price cuts for Wii U as they did for the 3DS ... they view the system as a dud and are not going to incur more losses trying to save it as they are losing money as is. Also probably means that they're not going to spend a ton of money marketing the system -- Mario Kart 8 will get its push, and Smash perhaps too, but I wouldn't expect them to put a whole lot of money on a system they view as a sinking ship. 

I would assume that the main push for those 2 games would be existing owners, with relatively low numbers to come from bundles/new console sales.

That they are projecting so low is truly shocking, meaning that they are slowly scaling down production, and that they will not cut the price since it would incure more losses.

I wonder what's next in store? Are those R&D costs a new console, or is it their QOL segment?

If it's QOL, does it mean that they are giving up on home consoles? Does it mean that they will turn to a software-heavy company (SEGA?)

Today report sure poses more questions than it answers, it will be intereting to follow the future developments.