Iwata doesn't expect big profits until some time. http://www.gamnesia.com/news/iwata-doesnt-expect-nintendo-like-profits-until-2016#.VGkvf8mnUcE

The fact that Nintendo over produced Wii U caused their previous losses. Now Nintendo is back at being cautious and this approach should allow moderate profits.

Some Iwata quote:

With respect to the impact of Wii U hardware sales on profit and loss, in order to sell 3.60 million units, we have to produce some more hardware units on top of our current hardware inventory. However, since the loss arising due to the hardware production costs being higher than our trade price was taken into account in the previous fiscal year, you could assume that there will be almost no loss this fiscal year for the sales of the 3.60 million hardware units.

This is the actual Iwata quote I believe:

http://www.gamnesia.com/news/wii-u-no-longer-being-sold-at-a-loss#.VGkxWVfF95U

"With respect to the impact of Wii U hardware sales on profit and loss, in order to sell 3.60 million units, we have to produce some more hardware units on top of our current hardware inventory. However, since the loss arising due to the hardware production costs being higher than our trade price was taken into account in the previous fiscal year, you could assume that there will be almost no loss this fiscal year for the sales of the 3.60 million hardware units."

From the sounds of it they already have a ton of Wii Us sitting in inventory so they don't have to manufacture many more to supply the entire fiscal year. Which is kinda sad actually, lol.

Indeed the attache rate for SSBU is going to be the envy of pretty much every publisher. Esp every publisher who puts games out on Wii U. There are few exclusives on other consoles that will rival the SSBU attach rate. Perhaps only Halo 5 will come close.

Companies don't give a sh*t about attach rate if they're not selling a lot of hardware to begin with. 

That's Nintendo's main issue now is that their handheld shipments are faltering every fiscal year to new lows not seen since the 1990s; last year was their lowest handheld shipment since 1997 (before Pokemon + Game Boy Color), this year will be even lower. 

Wii U is just a lost cause in a lot of ways so no use in really over analyzing that. 

Apple really f**ked Nintendo with the casual audience, but they're doing a number on Nintendo with kids too, I think that is frustrating Nintendo, because Sony/MS always was sort of hands off in those areas. In the battle for hearts and minds as it regards casuals and kids, Nintendo is simply losing the battle to smart devices. 

PS4 also prints money but as soon as it is done printing it just goes flying into a paper shredder/PSV

Well I wasn't being accurate, dont know how many, but a lot more they sure sold :D

The goal of a company is to make money. And in this regard, Nintendo is still much moroe healthy as a company than Sony.

Nintendo's hardware business took a big hit from the previous generation, but overall at the end of this generation, they will still likely go out with a profit and walk into the next generation with a chance to rebound.

People easily forgot that the Wii was such a stunning success that it sold 2 times their previous best home console.

Nintendo biggest mistake with the Wii U was the gamepad. It's cool, but sells nothing and is very expensive. A 200$ Wii U would have made so much more sales.

It's hard to make money if you have a continually shrinking userbase. Yes you can milk your core audience, but after a while there's only so many $300 consoles + $200 handhelds + $40-$60 games + $14 amiibos you can keep selling to the same eroding fanbase. 

It's the problem Blackberry has too (though Nintendo is not at such an advanced state) ... they have cash in the bank, but no one is buying their phones, so they face an ever shrinking marketshare. 

Nintendo really hasn't come up with an answer to how they plan to deal with smartphones IMO. Every day kids get hooked on those devices and are playing those before they even bother with a Nintendo handheld these days ... basically they have a front that is under assault and right now they're not putting up much of a fight. 

Nintendo fans need to understand the simple 2D dynamic of Sony Vs. Nintendo Vs. Microsoft is not all the industry is anymore. 

LOL. I knew that Nintendo making $$$$ long before Sony would have brought out the salt shakers.