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I wonder if they will go more upmarket with their next handheld.

Because the competition is really actually low-cost tablets and hand-me-down phones with freemium apps/games, the low cost 3DS has not had a lot of success stemming the tide. You have to justify why people should be paying $39.99 for a portable game in this day and age.

Maybe the play (especially with Sony handhelds out of the way) is to go higher end with the portable. Really strong specs, more IP aimed at enthusiast gamers, more marketing initially towards teenagers/adults like they have done with the New 3DS in North America.

The 2DS which was a play for the budget/kids market hasn't had a ton of success, more people choose the more expensive XL model if they choose the 3DS at all. 

Let the New 3DS hang around in stores for a few more years as the budget option for kids/families.