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The problem of the 3DS is the same as the Wii U, except it's not coming from the same reasons.

The 3DS has a very rude and ever growing and evolving smartphone game market to compete against.

But don't worry they are in the same bag of trouble as handheld: people are more and more interested in PC/Console games that mobile/handheld game because of the screen size, hardware and attraction limitation.

So the 3DS is the first handheld to have lost it appeals, sure, because it followed up on the DS which was a really bad idea, although the new 3D concept and very low priced made it a good sale for the first two years.