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Soundwave said:

Actually I think they are internally more worried about their handheld business than their console one. 

The 3DS is not behaving like a healthy platform does, a healthy platform does not start showing year over year decline in what should be its peak and coming off its strongest software release schedule. 

Smartphones are like a slow moving cancer that slowly but surely are eating away at the handheld business pretty much unabated. Nintendo is desperately throwing everything they can at it (Pokemon, Zelda, 2D Mario, 3D Mario, Mario RPG, Mario Tennis, Monster Hunter exclusivity) and the situation seems to be growing worse, not better. 

To be honest I see it almost every day, kids overwhelming even prefer to play on an iPad versus a 3DS. I honestly think this scares Nintendo more than any challenge they have ever faced in the game business. 

They probably are, but 43m to date and 100k+ weekly are still pretty good numbers. It's not in struggle city like the Vita or anything.