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Wyrdness said:

Why do people always make this misconception, the price point was not what gave 3DS problems it still sold fine what gave it problems was consumer confusion and the early drought and even then it still sold along the lines of 6m in those few months. As pointed out earlier PSP launched at that exact same price point and did perfectly fine.

It's ridiculous to assume that people didn't knew what it was because of the name. Usually, people try to use that as an excuse for the Wii U too. Ok, parents can make this confusion, but parents don't decide anything. Their kids will explain what they have to buy and they will get it. Adult gamers are smart enough to figure it out by themselves. Lack of software is more serious, but it PS4 managed to sell well with that. They cut the price, it started to sell more. It's quite simple.

Also mind that while PSP did decent numbers, it was pretty much onslaughted by the cheaper DS. The PSP also wasn't more expensive than a PS3 or 360. The PSP also was a multimedia machine in an age before smartphones and targeted teenagers and adults, that usually have deeper pockets. A lot of the features that made PSP popular are done better by smartphones. Vita is pretty much a beefed-up PSP. Ok, it has expensive memory cards, but that's a one time buy that costs around the price of a single game. Smartphones stole this segment. The one that remains is the same that the DS explored: kids and people after a cheap and good gaming experience on the go. They were cheap entries to play Nintendo games. I don't think people will pay 250 bucks for it and that's pretty much the point with the Wii U.