Just to clarify because some people still don't get it. Iwata said back last year that the 3DS will be sold below cost (not sold at a loss, that's different). Yesterday he mentioned that the 3DS and XL will not be sold below manufacturing cost anymore, but that does not mean itll be profitable, since the cost to bring a good to market includes more than just manufacturing.
Also Nintendo was able to improve over last years loss because sales to both North America and Europe collapsed. NA represented 30% of sales, Europe a little more that 25% and Japan account for nearly 40% of their revenue, during a typical quarter both Europe and NA account for 75% and Japan would account for about 20%.
Nintendo also had lower GSA expenses and also had fewer items in inventory which helped in the numbers. The only thing is their cost of goods number is going to go up because they have to produce two new items in the 3DS XL and the Wii U, GSA most likely is going to rise since they have to have a bigger advertising budget, Their y/y forex loss tripled, which i don't see improving.
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