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Although now that I've gone over the specific differences between the N3DS and the 3DS, I'm a bit more inclined to go with hardware update, rather than new console.

256MB memory, up from 128MB. VRAM updated. Face tracking to improve 3D effect angle. Extra analog nub and two extra shoulder buttons (incorporating the Pro Pad input). NFC for Amibo compatibility. Faster CPU.

Those were the main updates. The output resolution remains unchanged, not that this is the metric for a new console.