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Galaki said:

By that, I would have streetpassed a lot of people if the 3DS were actually popular.

There's a bit of a flaw in that logic; you don't take into account the popularity of StreetPass among 3DS owners. I have friends who have no interest whatsoever in streetpassing. They only take their 3DS out of the house with them when they actually intend to play games, and they probably never activated StreetPass Mii Plaza. I suspect that somewhere in the vicinity of 40-60% of 3DS owners actually use StreetPass, though of course this is pure conjecture on my part.

However, when you said, "Streetpass features failed hard on getting people to carry their 3DS on the go," I think you hit the nail on the head, for the reasons I just mentioned. Too many owners are simply uninterested in what StreetPass has to offer. I wouldn't exactly call StreetPass a failure, but I don't think it has yet had the effect Nintendo intends for it. I'm sure in Japan it's working wonderfully, and perhaps as the install base grows in the West, urban areas will start to benefit more greatly from StreetPass. But it's never going to become huge in the suburbs.

Of course the 3DS is struggling in the West, but that's about to turn around. It's hard to say what the 3DS's situation will be a year from now, but I think the console is far from doomed.