I'm starting to get 3ds deja vu here. Nintendo is first-to-market with a less powerful console. Early adoption is slow, competition mocks Nintendo. Competition releases superior, more expensive hardware. By that time the Nintendo games library is hugely superior, and they add a price cut to boost. Christmas shoppers see cheaper console + massive games library - Nintendo's hardware takes off - competition struggles ... everyone scratches their head.
Well, we'll see how much history is a guide to the future. :)