All numbers from Nintendo published figures:

US$ Exchange Rate - 100

Revenue = $18 Billion

Operating Income = $5.3 Billion

Net Income = $3.25 Billion

If they already made $1 Billion in Q1, then they will exceed expectations.

Though the $1 Billion may be OPERATING INCOME

In that case, they might be right on track.

No, it was 1 billion net income(1.1 operating income) and Nintendo pretty much alway do that since they are know for being conservative with their projection.

Unfortunately investors are now banking on that conservatism, so that if Nintendo doesn't beat their projections by a large amount, it's considered a disappointment.

Well if they can make 1 billion in the summer quarter, what can the make over Q3?

Maybe Nintendo is doing R&D on something so they predict lower profit, they also like to have commercials and ads all over the place, i would expect their Wii/DS ads to run non-stop for the last 2months of the year.

Because Iwata runs the company like Yamauchi did, at least finantially speaking: conservative projections and a large warchest.

Why so low? Two words to strike fear in your heart: angry stockholders.

yeah, being really conservative can sometimes backfire in that sense, because Nintendo still has beat the "whisper" numbers that analysts expect of them.