Reggie was misquoted when he said Wii U profitable after one game

[bananaking21]

Barozi said:

bananaking21 said:
ok i know this is off topic but could someone explain to me how software makes money for nintendo? i know how first party software makes money, but how do 3rd party games money for nintendo (or any console manufacturer) do they like take a percentage of every piece of software sold?

thanks! can i ask what does the 7$ "returns" stand for?