The idea behind Fusion is that one game is playable on both consoles,without paying extra.
This strategy doesn't lose money on software, on the contrary, every game has by default a bigger audience to sell to.
What might make Nintendo lose revenue/profit is HW sales as people bua lty both consoles to play all Nintendo games. Yet, that might not happen because the Fusion strategy, coupled with a rich and diverse line-up might just attract a lot of people who normally don't buy Nintendo products, for one reason or another.
Sony and MS fans, who don't care for the portable experience and who find the HC lacking in quantity and diversity, will probably be attracted if they are offered 2 consoles for the price of one and their type of games (all exclusive to Nintendo consoles).
