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Ail said:

Currency changes must have hit them hard,
Japan represents less than 30% of the sales but 90% of the profit...

They actually make very small profit in US and Europe relatively to the amount of sales there....
So basically Nintendo profit solely relies on how good it is doing in Japan ( 175 million $ operating income in US, 167 million $ in Europe, 2.9 billion $ in Japan..)

 

I had no clue US and Europe contributed so little to Nintendo's profit...

Nintendo Japan just charges its European and American subsidiaries very high prices so all the profit seems to come from Japan. From their total net sales only just over 12% comes from Japan.