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Should Nintendo have ditched the 3DS when sales plummeted after the initial launch due to the weak launch line up and subsequent lull of any significant titles prior to the holiday season?

Short answer: no.

As it's already been said, a price cut would go a long way in making the platform more consumer accessible as a game specific device, but would not make a significant difference in sales until the platform has the software/games to make the hardware worth purchasing at any price.

These early doom prediction threads were pretty old back in 2007.