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They are going to make money with this and keep a good market share. There is a significant market for handhelds and only one other significant player there. Nintendo has a large number of followers that they just concentrated in the same pool, for one single product. While I do not like what they have done, as it does not appeal to me, I think they they make a lot of money with that, selling probably 60-80 millions of this thing.
People might not be happy, but it will sell.