It`s obvious that Nintendo expected too much of 3DS. Maybe because DS was a huge hit, maybe because they thought that 3D alone would help sell the console, maybe they believed that the console would be better supported by 3rd parties... i`ll risk in saying that 3DS' failure is a mix of all.
What resulted was an unbalanced console with an high price, regarding it`s lack of software and not so good 3D (very restrict view field).
What does this mean for 3DS on the long run: at least 2 things come to mind (one good, one bad): better pricing coupled with incoming great games almost make it a real launch! With a price so low now, will it be easy fot Nintendo to drop it`s price in coming years to make it competitive?
About the competition from other portable devices:
I`m the first to say that there is and will be more competition - not so much about the core gamer but more on the casual gamer, at least for now.
Question is: is this a reality now? If it is, why isn`t PSP and NDS suffering with this and only 3DS? PSP seems to be selling the usual and NDS will sell about 130.000 or more this week. Shouldn`t at least NDS be a victim of the insurgence of other forms of portable gaming? Seems to be doing just fine.
So why is 3DS failing and not NDS or PSP? I`ll say lack of distinctive core games and casual games; disctinctive appearence when compared to NDS; unattractive 3D experience (field of view) and high price for it`s premise.
Although price and a good or great flux of games will help Nintendo, it still needs, imo, to resolve some issues as i stated above.
I hope Nintendo rethinks some of the flaws that keep hurting 3DS, when the time for Wii U comes.