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Soundwave said:
Software is up, but hardware is down YoY to date, so the title is misleading.

Software is up mainly because they've released more games this year to date -- last year prior to NSMB2 launching, I think we had like Kid Icarus Uprising and Spirit Camera and Mario Tennis from Nintendo?

This year you have Animal Crossing, Luigi's Mansion 2, Fire Emblem, DKCR, Mario & Luigi.

It's normal for software to increase YOY early in a console's life. The biggest reason is because games released last year and the year before are still selling in addition to the new titles.

Don't sell their success short, though. Software is up -- there's no "but" or "only because" involved unless Nintendo is giving away games for free. And several of these games are selling well above expectations.