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Sony has a chance, but the points you listed are really not that well done.

So let me get this straight? You do the currency fixture (not conversation) for the games, but not the handheld?

If you are going to convert the games to $40-$50 (It is apparently the price range of the PSP games in Japan), than the handheld should be converted to $249.99. 

Also the 3DS doesn't have 3.5 battery life. it has 3-5 battery life and 5-8 for DS (and this is under the assumption that nintendo is being conservative).