Exactly right.

I think this shows just how much of a disaster Wii U has been for them. Things have to change. I don't think Iwata being fired would do anything at all. We will see if Nintendo can correctly identify the 'rot' in the company and move to rectify the problems they've bought upon themselves. 

The Nintendo Fanboy Oath of Denial:

Never, ever acknowledge that smartphones might be having an impact on Nintendo's business. How could it? Can you play Mario Kart without buttons?! Why would you even want to? Nintendo just needs to release Wii Sports 4!

The irony here is that Nintendo fanboys have become like PS3/360 fanboys who thumbed their nose at the Wii early on "that's not a real game console! How are you supposed to play Virtua Fighter on that?". It's funny how it's come full circle with Nintendo fans now making eerily similar put downs to iOS/Android games. 

I think by now even Nintendo's management knows the truth, that iOS/Android gaming is impacting them massively by offering easy to play, NES/Wii style pick up and play games for a much, much lower cost and they need to make major changes now if they are to make profits in the modern gaming industry. 

My niece and nephew have absolutely no interest in a 3DS. They were asking for tablets this Christmas. Both of them are kids by the way.

I hope they go third party after this. They need to learn this lesson the hard way.

its happening anybody who thinks otherwise is in denial. Hell 3ds has already peaked. 

Edit matter of fact wasnt the whole gamepad concept designed to try to get in on the tablet market? Why would Ninty emulate that if they didnt think they had an impact?

Well, they should be able to make a profit in 2014, if that's not the case...

Dunno if someone said it yet, but its 240 mil, not 750.

They still have plenty in the bank to survive many more years at this pace.

Back on topic... i wish i knew what they are losing money on. Their software sales are good, the 3DS is not sold at a loss. The Wii U might be. So is this an effect of the price cut? Ala PS3? If so, then its a temporary situation and things should improve with time.

I know they built a new Headquarters aswell. Dunno where that is factored in.

Inventory is probably killing them. When they make a Wii U, they still have to pay the component suppliers whether or not they sell the system or not. 

When you're not selling as many systems as you hoped, they pile up in the warehouse and that tab is on you until you can sell them. 

It's the same with the 3DS, they probably were anticipating higher sales and likely ordered more units than they were able to sell and now are stuck with them. 

My fathers girlfriend and her four kids had altogether 6 DS's, how many 3DS do they have? None, and nobody is interested in one, they have tablets and smartphones and are happy with those.