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curl-6 said:

But here's the thing though; say you're a parent. Why spend $200 on a portable and $40 per game for your kid when you can just hand them your phone and let a free or 99c app entertain them?

Because the kid asked for it probably. Most parents aren't as cheap and shallow as you're making them out to be. If Nintendo markets it well, kids will ask there parents for one, and then the parents will get it for their kids because most of the time they love them and want to see them happy.