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Thread title could have been worded better.

Anyway, I see your point. But I don't think the handheld industry is in the position that analyst make it out to.

Sure the 3DS is showing very low sales. Any console with a rather high price tag and low software support will obviously have low sales. Even if smart phones weren't big right now, the 3DS would still have dissapointing sales. It's simply not a viable console at this point in time. If the 3DS is still having low sales even when it gets a slew major games, then we can talk about the state of the industry.

Fortunately for Nintendo & the industry, I don't see that happening. Once the 3DS gets a steady stream of major games, then sales will increase and put up worthy numbers.