Of course they want a bigger install base, it just comes down to a question of how much they are willing to sacrifice to get there. At this point, they don't believe that another price cut would do them much good, as the console is already the cheapest current gen console on the market, and that would likely prevent them from making any profit on Wii U sales.

Just to let u know, larger install base doesn't automatically Nintendo games will sell better.

Compare Mario 64/Sunshine to Galaxy/Galaxy 2, the have sold pretty much identical despite vastly different install bases.

Sames goes for Ocarina of Time/Majora's Mask vs Twilight Princess/Skyward Sword

Other games like Metroid, 2D Mario, Kirby, Donkey Kong, Fire Emblem on Wii sold basically the same as they did on previous Nintendo consoles.

It was pretty much only Mario Kart and to a much lesser extent Smash Bros that saw massive gains on Wii compared to previous entries.

like supporting their console?

Exactly. Microsoft has been able to handle the losses of the XBox brand for a while easily and Playstation is one of the few profitable divisions of Sony right now.

they do care but they care more about making a profit first foremost.

Because Nintendo is profit-oriented, they won't hemorrhage cash to move more systems like MS or Sony have shown they are willing to.

They don't have other markets to recoup their losses from, gaming is their entire company.

nintendo is a software company, they make a lot more money per sold game than m$ and sony, because they sale much more 1st party games.
sony and m$ on the other hand make money from 3rd party games, they need a huge installbase otherwise the plattform wouldnt be attractiv to 3rd partys.

nintendo dont needsuch a big market, 30m are enough to make a nice profit for them.

Having a high install base is every developers goal, but when you have no chance that goal goes out the window. You just do what you got to do to survive.

If Nintendo can make more profit off of selling their devices at their current prices than they could by slashing Wii U console costs by $50-100 and having a larger install base then that is what they will do. It has been, is, and will always be about profit for Nintendo. That's how they have so much excess cash over the years. Nintendo could probably make more profit off selling 30 million Wii U's than Microsoft could off selling 80 million xboxones or playstation 4's.

They do, they just can't do shit about it so they have to rely on making profit from game sales which is working out decently at the moment.