It's basically a handheld and you are comparing it to PSP which isn't a Nintendo HH and 3DS that is basically the worst selling HH. I'm sure I saw someone in a thread saying that it is bellow mediocre to sell better than your worst selling device even in Japan.
duduspace11 "Well, since we are estimating costs, Pokemon Red/Blue did cost Nintendo about $50m to make back in 1996"
http://gamrconnect.vgchartz.com/post.php?id=8808363
Mr Puggsly: "Hehe, I said good profit. You said big profit. Frankly, not losing money is what I meant by good. Don't get hung up on semantics"
http://gamrconnect.vgchartz.com/post.php?id=9008994
Azzanation: "PS5 wouldn't sold out at launch without scalpers."