This is tragic for Nintendo, it probably means no price drops for a long time and that they will have to answer formally to all investors worldwide in their next quarterly report.

There's more chances now for MS and Sony to deliver a console within the range of 400$ or less if they are willing to take a loss.

That doesn't make sense. The Wii U internals aren't top of the of the line and that gamepad is barely 480p and uses old touchscreen tech. Where are these losses coming from?

This just doesn't make sense. Reggie has been caught lying before on his Wii U promo tour. So let's not take what he says too seriously.

No, no one clarified if 2 was enough to turn a profit or even break even.

As for the merchandising arguement, that makes no sense. It's like saying that the PS3 was profitable at launch because the blu ray players and HD TV sets were turning a profit.

Investors buy stocks depending on the performance of each individual product, and how the projections are for sales. Right now, Nintendo is losing money on each console sold even with 1 game and they hid that from the investors, they lied about it and people may have put a lot of money, now they will probably sell their stock or sue Nintendo for fraud.

Yeah, the WiiU is like 2 DS's duct taped together. 480P is probably the TV output and the pad is probably much smaller. I heard it's only faster than SNES.

It's amazing to me that they can't make a profit on such a low end device. The gamepad is really hurting them in terms of profits.

Well, I know there are a few Nintendo investors on this forum as I've heard from several on other threads.

I still think Nintendo will turn in a profitable Q3:
- They've sold way to many 3DS's and 3DS games
- The Yen has weakened in their favor during the biggest sales period of the year
- With fairly strong Wii U sales by units sold and Wii U games at 5 million + for the quarter, this has begun to chip away at the manufacturing & sales expenses of the new console...even if it's not profitable yet, we'll see :(
- And you have to be happy with the Wii software sales for Q3...Just Dance 4, etc...they've already surpassed sales projections for the year for Wii game sales
- Same goes for the DS line of products

I just can't see any scenario where Q3 doesn't turn in a sizable profit for Nintendo, lending itself to a return to Annual profitability after losing money in 2011. The question is...how profitable.  They already slashed profit projections in late October from 20 Billion Yen to 6 Billion for the fiscal-year ($227 million U.S. to $68 million)...if the 6 Billion Yen gets revised lower in Q3 results, the stock won't go up.  It'll drop further.  

I'm hanging on a hope and a prayer that Q3 profits will be big enough, with no downward revisions - to boost the stock up to $14/share, but then I'm most likely getting out. There's the gamer and investor in me - the gamer says, I love Nintendo, the investor says - I've lost all trust in Nintendo management, and I've lost faith in your ability to meet the expectations you set for yourself and with the public.

Yup pretty much my thoughts exactly. I'm really disappointed.

According to Iwata via Reuteurs, Nintendo will be profitable by year-end so I expect Q3 to offset the losses inccurred during Q1+Q2

http://www.reuters.com/article/2013/01/07/us-nintendo-console-sales-idUSBRE90605420130107

Considering WiiU's attach rate - which is what? 1.2? This means Nintendo is just losing money on WiiU currently.

Clearly, this is not a good situation for Nintendo to be in.

Ummmm, I am not sure where you are taking this number. But the current attach rate is 2.1.