How does Nintendo possibly post a profit next fiscal year?

[dudeitsminion]

Mummelmann said:

dudeitsminion said:
Sell the Wii U for $199 and $$$$$$.

How will taking a massive loss on hardware help them make more money? If they're still losing money at 299$, 199$ would bleed them completely and they're not even guaranteed high sales at a lower price.

CNN estimates that the Wii U manufactures for $228 a unit.
http://www.destructoid.com/cnn-estimates-the-cost-of-wii-u-s-parts-to-be-228-249435.phtml

This article is a year old so I imagine the parts are even cheaper now. If they sold at $199 they would only be taking a small hit while selling millions more.