my thoughts exactly

Those are some major software successes mixed with major harware shortcomings. I think the WiiU will actually meet or be close though - they didn't project 5.5 mil sold, but shipped. Right now they project to around 5 mil sold, so the rest of the shipped stock would be inventory.

In any case, in the big picture I think they will beat profit projections. Software is more valuable than hardware, and the weakened yen will be massive. If they yen exceeds 90 my year end - which is very likely - Nintendo's profit for the year could be double estimates. They will then probably be printing money in 2013-14.

If you look at Nintendo's exchange rates on 3/31/12 of 82.19 JPYUSD vs 9/30/12 77.60 which resulted in an additional JPY 19,282,000,000 of translation loss. We can roughly estimate each 1 JPY to USD fluctuation results in 4 billion yen of losses for Nintendo. From 9/30/12 to 12/31/12, the exchange rate ameliorated by nearly 9 JPY to $1 USD. Quick and dirty math says, Nintendo gets to recover up to 36 billion yen in losses quarterly, plus the 3rd qtr is the highest sales, hard to see 12/31/12 numbers come in too ugly.

For the fiscal year, Nintendo assumed 80 jpyusd to arrive @ 20 billion yen in operating income. As of today's rate @87ish, that operating income would roughly improve to 50 billion yen, assuming rest of their assumptions come in line. Due to below expectation hardware numbers thus far, this might explain why Nintendo is extra stingy with marketing blitz? With the merger of Osaka with TSE, Nintendo stands a chance to be included in the Nikkei, so any oomph in numbers will really give the stock the boost it needs.

Actually I believe Sony's gaming division was the only profitable division out of all of them in the last few years.

I knew Sony Financial were profitable since their inception but I didn't know it was their only one doing in Q2 o_O

edit: Music too, thank god for One Direction and Adele

Where are you getting 10.5 million for 3DS?  I see over 13m on vgchartz data.

In 2012 Nintendo sold over 13 million yes you are right :) However, Nintendo's Fiscal year started from April 1st 2012  until March 31st 2013. As a result, sales from January 1st until March 2012 are not shown for their fiscal year ending of 2013 :D Hope it helps.

Oh, okay.  That's why I was confused.  That also means that the sales aren't over until March 31st.  So there are a few months left to see what happens.  (3 months)

Yeah that 17 mill ... ain't happening.

I'd say they probably get to about 14 million (shipped), especially with no MH4 in Japan for Q1 2013.

so what does the negative numbers mean on operating costs?