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DS sold to casuals. Nintendogs and Brain Age were some of it's best sellers. NSMB and Mario Kart also sold to that base.

So far 3DS has been focused on trying to get more 'core' players. In Japan that's fine, because they aren't into the violence like the west is and are highly into portable consoles, unlike the west. So Japanese consumers are happier with what 3DS has to offer to the 'core'.

As already mentioned in the west there's a general lack of interest in portables - especially now with tablets/smartphones, and those 'core' that are percieve Vita as superior (if too expensive).

DS sold hugely to girls (50% of it's base) but so far 3DS has done nothing to capture that market except Nintendogs & Cats which is frankly, quite stale as a series now. Once girls and the Brain Age crowd are attracted again, they'll also buy NSMB2/Mario Kart but are less likely to get a 3DS for those games (they have them on DS already).

Question is, has iOS completely stolen that market? Personally, the games that I played on DS (Puzzle Quest, Brain Age, NSMB) could easily be done on iOS/Android for a fraction of the price (minus Mario). Apple has destroyed the value proposition for Nintendo for the casual gamer. I wouldn't concieve of paying $40 for a game like Brain Age/Rythym Heaven/Brain Academy/Wario or a lot of other casual Nintendo titles. Odds are I can find a clone for a fraction of the price for my smartphone. Sure I'll miss Fire Emblem but likely there's a clone for that on iOS too.