D
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They';re not bleeding cash because of the Wii U hardware. They've said that the sale of a single game makes the console profitable. My guess is that they are bleeding cash because of large software development teams and that the sales of the WiiU haven't been enough to cover their other expenses.
I know they said that, but selling the system at a loss is still a loss. Nintendo used to make nearly $100 from every Wii they sold. For a comparison, even the PS3 generated a "profit" with a small attach rate, and yet Sony is still losing money from that venture. Just because they make up the cost of manufacturing the console doesn't mean the company as a whole is making money with the project. Hell, the tablet alone costs nearly $100 to build.
So imagine if they drop the price by $50, they'd have to hope consumers buy an additional 2-3 games just to make up for the cost. This is more realistic eventually (I wouldn't be surprised if they cut the price once Zelda or Smash Bros is released), but not now that there's hardly any compelling games to buy.
And they are bleeding cash because of the Wii U. From this Gamespot article:
The news comes just days after Nintendo posted 36.4 billion yen ($387 million) in operating losses for the year, with Nintendo president Satoru Iwata attributing a major cause of the shortfall to poor hardware sales,