Is it logical? No, not really. They might give it a short lifespan at some point but scrapping it? Not logical. They'll want to make back R&D at the very least.
Could they? Oh yeah. 3DS and Cafe could both crash and burn entirely and Nintendo would get up, dust itself off, and try one more time (with an extremely conservative Wii/DS-esque approach, no doubt). They could completely for an entire generation and not go out of the business, though the level of losses they could sustain wouldn't match what Microsoft or Sony can shoulder.







