Nintendo's brand is the strongest its ever been, posting losses at the end of one generation and on the cusp of another is fairly mundane point. The reality is they have the capital now that they've never had to take these financial risks. Whether they pay off or not will have a big bearing on them although you can only speculate on that, to suggest bankruptcy during a non-profiting prep stage of development is laughable.
Microsofts xbox division wasn't profitable during the same gap time between xbox and 360, its a pretty common trend but still seemingly doesn't stop morons believing it spells doom.
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Smurf, the cream of Sonic fanboyism