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I think it was a good time to announce it.
The overlap scheme has worked for Nintendo nicely
Announcing it in march vs at E3 would lead me to believe that someone else may be trying to do 3D and Nintendo wanted to get the jump on them.

Business wise...its beautiful
In my opinion, The current DS is following the GBA in terms of life cycles.
(The DS having 4 major iterations instead of 3)

GBA - 2001 --- GBA sp - 2003 ----- GBA Micro - 2005

DS - 2004 --- DS lite - 2006 ----- DSi - 2008jp ---- DSi LL (XL) - 2009jp / 2010usa

3DS - 2010? / 2011?

The two consoles (gba / ds) overlap as GBA was still running quite strong in 2005 and into 2006
The main backward compatibility aspect stopped with the DSi and the DSi LL giving the GBA an effective 6+ year life cycle.
The obvious success of the DS will give it at least a 6+ year cycle

Nintendo replicated the evolution of the two systems very closely.
GBA was redesigned to the SP to feel better and added small features, and the Micro was for a niche market.

DS was redesigned once to the "Lite" to feel better and add small features, and a second time to "DSi Lite " to allow for camera use and the down-loadable content aspect of the system to add DSiware.
The DSiXL is (I believe) for a niche market


The DS and the 3DS will hopefully have that same cross-over / overlap mentality that will surely benefit long time users of the system. If you can re-download your DSi games as well as play the DS library of games...
It should start the same trend that GBA and DS had before it.



Predictions For Last Full Week of Sales in 2010)

WII - 80.35 Million

360 - 43.88 Million

PS3 - 41.40 Million

More terrible predictions coming Jan. 2011!!!