1.7 billion yen (CPS division)

That is still more than Playstation alone, but I would dare to say the OP's talk of recent Sony losses is bullocks

Yeap... there are no PlayStation Division... the PlayStation's products is within CPS Division.

CPS = Bravia LCD TV, PlayStation and Vaio.

If Nintendo wants third party support (and apparently they do), then they need huge sales from the get go, because by now you should know that Nintendo pretty much has no room for error when it comes to third party relationships. $199 would still be expensive for a handheld, so I think it was the right move to go a step further. In the short term it may look like a bad decision, but this price cut will pay off in the long run.

Another important aspect of their forecasts is the yen to dollar exchange rate. Their new forecasts are based on an even weaker dollar, so that's part of the problem (something Nintendo can't do anything about, unfortunately). It's getting tough for Japanese companies on the whole; Microsoft has the benefit of being an American company that does most of its business in its home country.

Uhh no. 360 is likely already profitable for it's life, which leaves just the ~4b they lost on Xbox 1. Additionaly, it's been all smooth profitable sailing for 360 for years now, and like PS2 it will have many profitable future years. All wild speculation on my part but I'm guessing 360 could erase all Xbox 1 losses by the time it's said and done. Leaving their next system to start out in the black.

Doesnt sound impressive but for a company like MS to break into videogames and create a worthy brand like Xbox, get millions of boxes on top of TV's, create the XBL network which is used to sell movies and so on, and not lose any money over it? Pure gold for them.

And Vita is FAR from the only reason Sony is losing money. In fact they're losing less money now that they're introducing Vita than they were before. Ps3 is why they lost so much money in the past. Now they are doing better because PS3 hardware is profitable.

Hes right. Nintendos Wii was the only profitable system from the very beginning. Microsoft and Sony were bleeding money from the beginning of the  gen until about 3-4 years after launch. Sony and Nintendo know gamings roots. It involves some sort of handheld market and they they are both capitalizing on it. The handheld market is larger than that. Handhelds are more profitable than Kinect. It's Microsoft who is out of the loop my friend. Look how many PSP's and DS portables have been sold. Microsoft doesn't dedicate enough companies into variety. The focus companies on one thing or nothing at all. They still have a lot to learn.