Soundwave on 03 May 2017
It's for 6-year-olds. What's the problem? It doesn't have to be some huge hit, it's to serve the kids market that won't be able to afford a Switch for a while. It gets new kids introduced to the Nintendo IP and then they graduate up to Switch in a few years. No problemo. It's something they're going to ship 5-6 million units of, it's not some huge market device.
I think they could keep it around for another 2 years really. A 6/7/8 year old doesn't need anything better than that. It has Pokemon, and perfectly playable Mario Kart, 2D Mario, 3D Mario, Smash Brothers, Animal Crossing, etc. It's got good enough games, combined with the DS, several thousand titles.
