Nintendo has always sold their hardware for profit. They made money on the Wii from day one. They're taking a bath right now because the strength of the Yen v

Nintendo has always sold their hardware for profit. They made money on the Wii from day one. They're taking a bath right now because the strength of the Yen versus USD removes a lot of their export profit. That, combined with the fact that they're ramping up production of the 3DS and the next console, is the reason they lost money.