There really is no telling how being off projected shipments that badly has hurt Nintendo. From what I gather, Nintendo shipped a minuscule amount of Wii U units last quarter because stock level at retail was still very high. What kind of stock are they holding in storage? I would imagine that they spent a lot of money on production set-up with Foxconn but how much have they had to scale back? You know that they can't be running the same kind of schedule, which greatly impacts efficiency. It has to be a huge mess on the production end, given their early projections and goals.
As CavemanCavan said above, the more you manufacture, the cheaper your production costs are per unit. The same is true with your front-end costs, like advertising and shipping. The Wii U has been so far off Nintendo's expectations that there really is no guesstimating how it stands with regards to profitability. Only Nintendo would know for sure. However, I think whatever time-frame they had initially is out the window.
