Sometimes you lose today's battles to win tomorrow's wars. Where is AMD in mobile? Where is AMD in cloud gaming? Where is AMD in pro graphics and HPC?
NV is smart. They want to avoid fighting a losing war with Intel like AMD. To do this, NV has leveraged its resources more effectively. Less money in GeForce and letting a few titles slip through their fingers to end up in Gaming Evolved. More money in Tesla and Quadro and Tegra and cloud gaming and other as yet unannounced projects.
Remember that tech conference demo of breaking glass and fluid and JHH saying on stage to the (mostly Tesla-oriented) crowd something along the lines of "we have billions of dollars in gaming GPU revenue, which we can leverage to create HPC-oriented GPUs"? Then recall how they had hundreds of thousands of pre-orders for Kepler pro cards. Then recall how GK110 is destined for pro cards first. NV has a decently defensible position in GeForce so its just holding the fort there and spending its resources on other, nascent markets. There is nothing wrong with that, and as a NVDA shareholder I'd be angry if NVDA were NOT focused on non-GeForce stuff.
Let's face it, GeForce is not a fast-growing, sexy market anymore. GeForce = [pick once-hot, now-not hottie], Tegra = Megan Fox, Tesla = [pick your favorite hottie]. And Quadro is like a better-aging GeForce, like a J-Lo or something.
Quadro/Tesla make enormous profits. A LOT of it, even though they don't break it down that way since they share R&D with GeForce.
http://www.anandtech.com/show/5830/nvidia-q1-fy2013-earnings-report-924m-revenue-60m-net-income
Lower-end desktop discrete (GeForce) is on the wane and will vanish in a few years, gobbled up by iGPUs/APUs. Ditto laptop discrete GPUs.
Even at the higher end, desktop gaming is not the growth industry it used to be. Mobile, casual, and cloud gaming is where it's going to be at.