If this is true then Nintendo may be in more trouble then we thought.

So, the reasons Nintendo has been so profitable this past year are:

1. Weak yen
2. Cost-cutting measures
3. No cost incurred on WiiU production

Did I sum that properly?

Yes, the "Wii U is no longer sold at a loss everyone rejoice," news was smoke and mirrors accounting magic Iwata came up with to appease investors and buy time.  Though if the cost of manufacturing is still an issue that could be bad.

This would explain why nintendo didnt bother to compete during the holidays. Always wonder why they havent cut the price yet, apparently they cant.

Amiibo's make up for the loss, if their is one :P

the other possibilities
- nintendo is going to release a hardware revision and is going to book the r&d cost for it this coming year
- they are factoring in a future price cut
- a combination of the above 2

Yeah, I figured that out months ago. As soon as you remember that Nintendo forecasted selling like 9 million Wii Us by it's first March, meaning they had to have had that many manufactured by then, the rest becomes obvious.

So, for clarification, yes, the Wii U was being sold at a profit for a while. But the reason was because they were selling old inventory, not because manufacturing costs went down.

They need to figure out a way to keep costs down once they start manufacturing again. I'm not saying this will happen, but a redesign soon would not at all surprise me. They need to keep profits as high as possible while they're riding out the Wii U. You probably won't see much more than 6m more Wii U's sold in the rest of it's life span.

And this is just tech that's slightly more powerful than last gen. Imagine how much Nintendo would be bleeding if they had tech on par with PS4 and X1. They chose the lesser of two evils

Why do people who are haters of Nintendo believe everyone BUT Nintendo. Nintendo has making games longer than any of the other two Since the Seventies if count arcades, I think they know more then JP and Morgan.
It's constant bashing by these people in these forums I can't stand. Why can't you talk positively about your system of choice, is it that hard.
Didn't your mother teach you if you have nothing nice to say do not say it all

Interesting read. But two points to make:
1. we don't know how much R&D is affecting that bottom line...R&D which nintendo said it would unveil midway through this year.
2. We know the units themselves are sold at a loss, but we don't know if the units are profitable after including games and peripherals.