Yes, well they haven't been making great margins like the Wii/DS years.
http://www.marketwatch.com/investing/stock/ntdoy/financials
You can see from looking at the Gross Income versus the Sales/Revenue. In 2009 Nintendo had a 43% gross margin on over $17B of sales. Since then not only sales have dropped year by year to around $6B but margins have also steadily shrunk to 21% in FY ending 2013.
The revised forecast for FY ending 2014 is below that of 2013, and it would't be too surprising if margins continued to shrink, since the cash-cow Wii/DS businesses continued to shrink, and 3DS/Wii U had more bundling and price cuts.
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I wonder though if we can blame the 3DS because at the end of the day they are making a loss because SG&A > Gross Profit. SG&A includes R&D for both 3DS & Wii U so it's hard to point the finger which one is more to blame. Likely Wii U games are more expensive in terms of R&D so I think Wii U is more to blame for high development costs, and little revenue.
