Corporations can post a big quarterly loss, or have their revenue/profit be down significantly compared to comparable quarters, and still come out very profitable at the end of the fiscal year (EA for example). And, these losses do not necessarily mean that product is not selling; a lot of publishers and developers are investing heavily in R&D, marketing and other costs in preperation for the next generation of games so many of them are likely to have similiar quarters.
Since 1998, Nintendo netted 4.9 billion dollars in profit, Sony (game division) netted roughly the same and the Microsoft games division lost 3.6 billion. It's safe to say that Nintendo is doing just fine.
For more clarification on Nintendo's bottom line, read this:
Nintendo vs. Everyone