The problem was that the first actual system seller, Super Mario 3D World, didn't show up until a whole year after the system was launched, and came out just in time to be utterly overshadowed by the launches of the PS4 and Xbox One. Really, the fact that 3D World was outsold by Knack, even if only for a few weeks, should indicate how badly wrong Nintendo got it.
The name and marketing didn't help, but they didn't have to be insurmountable problems - the 3DS had those issues for its first six months, but managed to get its own system sellers (Mario 3D Land and Mario Kart 7) out in good enough time to let the system hit its stride before the PS Vita even launched. Which makes it all the more baffling why Nintendo didn't just make the same mistakes from the 3DS launch, but made them a thousand times worse.
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