It takes a fanboy to swallow a FIVE HUNDRED MILLION loss without batting an eyelash.

Something tells me you don't know a single thing about business or investing.

Nintendo can't win at consoles and lose at business all day long. Unlike Sony and Microsoft, they can't be loss leaders. Xbox can run 500,000,000$ losses and be fine.

Nintendo can't.

You know what the difference between past-Nintendo haters and new ones?

In the past, Nintendo ALWAYS profited. Every weak console = profit. They have never lost $500,000,000 in a single year.

But hey, MASSIVE losses are nothing, right?

iOS is the competitor to everyone. It's easy to pretend that niches aren't connected, but they are. With every brand of entertainment it's about money and time. You can't spend money and time that you've already spent elsewhere. If iOS games are first past the gate and successfully use up everyone's money/time allocations for gaming then they win. Regardless of whether they are competing against other touch-based games, casual games, or first-person shooters, MMOs, and even movies.

People have been declaring Nintendo to be on the ropes for the last few console generations. But that doesn't excuse the fact that Nintendo is facing far more serious competition than they ever have before, and they don't appear to be keeping up. Nintendo's previous problems were of the "not making as much money as fast as other companies were, for a while" sort, now they are seeing actual losses. Nintendo got lucky with the Wii. They innovated their asses off and came up with something that resonated with a new, larger gaming market. But now their innovation has stalled out, while that market segment is being cannibalized by other folks.

If Nintendo were trying something truly innovative (like the DS or the Wii) then perhaps there would be justification for people to mute their criticism to some degree, and give them the benefit of the doubt, but that doesn't appear to be the case. They appear to be flailing and clueless, that's not a good sign.