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I don't think 3DS is a failure by any means.  The software lineup isn't there yet for core and the mass market is generally unaware of it at this point.    That will change as more units gets out and more people see it.   However, either way software while plentiful for launch, isn't compelling yet.

Glasses free 3D is cool, but will not sell 3DS long term.   Nintendo needs some new gaming ideas.  A Pokemon / Nintendogs / Brain Age kind of hit (not those IPs - a new one unique to 3DS as Wii Sports was to Wii).

NGP as far as we know about it so far, is currently doomed to be the PSP2 in all respects IMO.  Sony doesn't seem to have learned anything from PSP/PS3 and are repeating all the same mistakes.   However, PSP/PS3 are hardly sales failures (except compared to Nintendo's systems which NGP inevitable will be).