They just have to increase their game output, and everthing should be ok.

You say this like you have some insider source

Their revenue would decrease, but their production costs would decrease as well, so it would balance itself out and even benefit them.

You probably would like to read this article: "A deeper analysis of nintendos financials - why they can't drop hardware"         http://www.zeldainformer.com/articles/a-deeper-analysis-of-nintendos-financials-why-they-cant-drop-hardware#.VAqLkC_r7Q8

From NeoGAF 12-25-2013

We also need to consider profits though. It's costing a ton for the Big N to keep their consoles afloat, without which they'd be making money...

Whoa. Less than 10k secure employees but having over $5 billion of revenues?? Am I right to be impressed about this fact or do other companies compare similarly or better than this?

Edit: Found a list of the 63 largest companies in wikipedia. Few companies have over billions of $ in revenue with less than 10k employees, focusing on commodities: Trafigura, and Vitol.

Going to look at the largest entertainment companies now.

Well we know for a fact that Nintendo has posted losses two years in a row. 

What?! Please tell me you're aware of all those reports about Nintendo having had '3 years of consecutive losses' or something like that.

*even tho they technically made a tiny profit in one of those years*

It's not as bad as the 5 years now Sony has posted losses. Considering they are about to be on a upswing i would avoid any sentiments 

What does this have anything to do with Sony? Now you're just deflecting because you're unable to respond to the topic on hand.