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Anfebious said:
Well if the 3DS is really struggling to get to DS levels and is really being beaten by smartphones that only means this is the end of Nintendo. If Nintendo loses their handheld stronghold then they are fucked. Could this be Nintendo's last generation? Are we facing their slow demise?

No, we will not. Even if this generation is a setback, Nintendo still have the potential to create sales phenomenons seemingly out of nowhere. As industry veteran, Warren Spector (someone who's been there from the very beginning), implied that you should never underestimate Nintendo. He implied that for a reason. 

There is a saying: The bigger they are, the harder they fall. In the case of Nintendo, they are a relatively small company with ridiculous revenues for their size. As an example; both MS and Sony have 100 000 + employees each. Nintendo? Less than 6000. When Nintendo stumbles it wont affect them nearly as much as a megacorporation - thats why they can continue to survive even through setbacks.