Forget about the competition! Nintendo is killing ITSELF.

[Salnax]

The DLC and region locking things are minor points IMO. NSMB2 had problems, but DLC was not connected to them; the game had plenty of levels and content. As for region-locking, only a small fraction of gamers care about that.

As for the lack of 3DS games, that is hardly Nintendo's fault. I mean, it's not as if they haven't released their fair share of games this year. You have proper hard/middlecore games like Kid Icarus: Uprising, Mario Tennis, NSMB2, and Paper Mario, casual games like the new Demon Training, Style Savvy, and Art Academy, 2nd party games like Lego City, Professor Layton, and Spirit Camera, and eShop games like Fluidity, Rolling Western, and Sakura Samurai. Not all of these games are top tier, but there's hardly a lack of material. And even the disappointments (NSMB2) are well worth the cost of admission.

The 3DS's software shortage is 3rd parties fault. This year, the only major 3rd party releases outside of Japan have been the latest Mario & Sonic game, Kingdom Hearts 3D, Resident Evil: Revelations, and... ports. Later this year, we will have Epic Mickey, Adventure Time, a couple of multiplat games, and Harvest Moon.