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People seem confused. Some points:

-Wii U is much improved due to MK8 and sales are up over 200%. If that carries forward for the year, the system should sell a solid 7 million or so. I would expect at least double last year in the end, but very possibly closer to triple if Nintendo takes aggressive steps such as a reduced price, ets.

-3DS is struggling relative to its previous success and especially when compared to the DS. The dedicated handheld market has taken a major blow from other mobile formats. 3DS is still a solid success on par with systems like XB360 or PS3, but not reaching the levels handhelds have enjoyed.

-Nintendo is lost money because it is a slow quarter for the games business. It doesn't matter if Wii U or 3DS turn a "profit per unit" if the overhead of running the company is greater than revenue. Game companies typically expect to lose for 3 quarters and turn the profit from the Christmas period. The goal here is to minimize losses.

-Nintendo definitely needs a new handheld product to engage young consumers. Be it a tablet, a phone or something even cooler than either of those, 3DS isn't quite cutting it.