With the price cut having taken place and sales still not drastically improved and the biggest names in Nintendo (MarioKart, Super Mario 3D Land, LoZ:OoT) all present. I can't see Nintendo doing all that much better in the near future.

Sales did drastically improved though, especially since there's still only one game the majority really cares about.  Sales are still good (post Starfox numbers aren't even in yet), and the system is going to be pure gold dust during the holidays.  And except for Mario Kart, Nintendo certainly haven't announced their biggest names yet, as 2D Mario and Pokemon are still in the deck.

Also I think the price cut was a massive mistake. The last week of July according to VGChartz the 3DS sold 162,695 units in the week. All these units were sold at a profit. Today now that the price cuts immediate effect is over we see sales of 214,836. Thats a difference of alittle over 50,000 units. While that is definatly an improvement, Nintendo was actually turning a profit on every unit sold earlier on top of that profit they were making profit off of all their software.

Respectfully, I disagree.  First, those numbers are way off (you were looking at total software totals, not hardware).  Check the last week of July (ending July 30) on the site again and you'll see it was at mere 56,582 units WW for that week; almost three times less than the figure you gave.  In fact since mid May it's been in the 70,000 unit range WW, consistently below the PSP until Zelda arrived.  And even then it never quite hit 100,000 a week.  Obviously in August it dropped to abysmal levels due to the impending price drop.

The price drop was absolutely needed.  And remember that once a customer buys a $40 Nintendo game to go with it, be it Zelda, Star Fox, or later this year Mario or Mario Kart, Nintendo is likely at a profit again.  Additionally, within a year's time they'll likely at least be breaking even (if not making a small profit) on hardware again.