Hate to hit the thread with some reality:
Last year despite the launch of Pokemon X/Y, 2DS in the West, Animal Crossing, Luigi's Mansion 2, etc. Nintendo suffered their lowest handheld yearly sales shipments since 1997, that means under the GBC, GBA, or DS they've never had yearly handheld sales as low as they did last year. Let that sink in for a second. And this year Nintendo is projecting even lower sales than last year even with the New 3DS in Japan.
I don't think the problem with a "new" iPhone or iPad is so much that the parents go out any buy the newest model for their kids asap. It's more like they might buy the new iPhone or iPad for themselves and guess who gets their old iPad/iPhone? The kids. Who then proceed to download games for it the first chance they get.
So why pay $170-$200 for a 3DS plus $30-$40 per game when as a parent you can just get yourself that new iPhone and give your kid your older iPhone 5 or something?
Even Miyamoto has said he is worried about hand me down tablets/phones taking over their market.
3DS is doing OK, but it's not selling on par with the DS obviously but not even the GBA either. Lets not kid ourselves into the thinking the market hasn't been dramatically altered.
