Sony/Google don't really need to undercut Nintendo on the price of anything. They have free games. Free. Can't get any cheaper than that.
The other thing that's killing Nintendo right now is the smartphone thing isn't just a one wave hit.
Imagine being kicked in the balls. That's bad right? Now imagine being kicked in the balls, and then being kicked in the balls again, and then kicked in the balls another time.
That's really, really bad.
The damage done by smartphones/tablets is multi-tiered and on-going. First it was just the smartphones, but still Nintendo was in OK shape. Sure they had to concede a lot of the adult Nintendo DS audience, but kids still can't really afford smartphones with data/calling plans. That was only wave one though.
Wave two was the introduction of the tablet in 2011. The tablet started to hurt them and it's a non-contract device, but still tablets were at least for the first couple of years fairly expensive because the iPad was the main/only choice. So at least the 3DS had some breathing room in its early years still.
However the death knell really has been all these cheap Android tablets. Now kids can have their own tablet, I see families of kids where each child has their own tablet. This is the third kick in the balls for Nintendo and the one that hurts the most (Sony's portable ambitions were already dead) and this what's driving the poor 3DS shipments of the last two years IMO.
This is an 8-inch tablet with a 1280x800 HD resolution display and the GPU I believe is slightly better than the one in the Vita with a larger battery and more RAM. It's $99.99 at Best Buy right now:
And these types of sales pricing (tablets for $99-$129) are common place, it's not rare. This is a large part of the reason IMO that the cheap 2DS hasn't done shit for the 3DS brand.
