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I'm trying to understand why some people are mentioning "smartphones and tablets" in this topic.

Smartphones and Tablets compete with the Handhelds? Yes, but its only a very small competition now (maybe in the future Smartphones interfere in Handheld market). People who want to play games in Smartphones are different people who want a 3ds or a Vita. These people don't want to play Mario, Zelda, etc. For they, these games are too complex and too long. They want games like Angry Birds, which is simple, cheap and funny. That's why there only a few "hardcore" games in the Smartphones.

Smartphones and Tablets aren't the responsible for 3ds sales drop. The lack of games and their price are the reasons for the sales drop. Its time for Nintendo make a price drop for 3ds games, something like $29.99 for new releases and $19.99 after a year of release. Also, 3ds needs more good indie games. Something like escape goat or something.