I'm starting to think Nintendo might be eyeing the mobile business model of regular new hardware iterations without true "successors" that render previous iterations immediately obsolete.

In other words, 3DS to New 3DS isn't so much DS Lite to DSi as it is iPhone 4 to iPhone 5. Software support for the OG will steadily decline over several years instead of ceasing all of a sudden, while newer iterations are fully backwards-compatible and have an ever-growing catalogue.

Either way, we're either looking at 3DS and 3DS XL getting a major price drop or they're being completely replaced by the new models and will be discontinued.

This is the same timeframe that the DS-DSLite-DSi had last generation. It doesn't seem like they've changed much of anything in terms of how it has and is being done, then and now.

There are several differences. The DSi didn't change the button configuration of the DS line; the New 3DS adds two buttons and an analog pad. The DSi didn't receive significant exclusive software support from Nintendo; with Xenoblade, New 3DS already has more worthwile exclusive content than the DSi ever had, and Nintendo has promised additional support. DS games didn't benefit much from the additions made to the DSi; New 3DS will not only impact upcoming games, but will retroactively provide a benefit to games that supported the Circle Pad Pro, and to games that support stereoscopic 3D -- almost all of them, in other words. The DSi XL actually made games appear blown up and pixelated, while the New 3DS will do the opposite and improve image quality.

The time frame may be similar, but if one thing is clear it's that Nintendo is absolutely changing the way they're going about their mid-generation remodel. This represents a much more significant improvement over the 3DS than the DSi was over the DS Lite, mainly because Nintendo seems to be committed to actually making the upgrade worthwhile with exclusive games not possible on the older hardware.

It is a new console, with new games that won't run on 3DS.

Ahh I see what you meant then, I was thinking you meant that they've changed time-tables which they haven't.

I will agree, though, by just looking at the specs that this is above and beyond what they did with the DS->DSi, and I for one actually like that they are doing this because it actually gives me an incentive to move from 3DSXL to the n3DSXL. Back when the DSi was out and when I eventually upgraded, the only reason I did was because my old DS (original) broke at the hinges from mismanagement on my part. Had it lasted, I would have never moved to the DSi. Getting Xenoblade Chronicles and the promise of other good games like that... sweatens the deal.

As does the 180$ price tag. I wonder if its new hardware sold at a loss or old hardware OCed and still at a profit.

I only see two options!

1.) Make it a new console. Call it the 3DS2 or 4DS and say it's backwards compatible. Fully invest in it.
2.) This will become the 32X of handheld gaming. (The stopgap revision on the way to the Saturn)

Number 2 would really do some damage to the brand.

Eh? $180? Is that official? I haven't seen anything about a price for the West.

I bought an OG 3DS mid-2012, right after the XL was announced and I decided I would prefer a smaller model. Lately the L and R buttons have been malfunctioning sporadically, and the XL screen has been looking nicer and nicer. I only wanted to buy one Nintendo handheld this gen, but I was already on the fence about upgrading if the timing was right with regards to having the funds.

Slap a whole bunch of new features on there, improved online loading times, longer battery life, the CPP buttons, better 3D viewing angle -- this is a very attractive upgrade. As for the exclusive games, as long as they are technically unfeasible on the original 3DS, and the original continues to receive software support, this move doesn't offend me in the least. I expect people will argue for months or even years about whether this or that New 3DS exclusive would have been possible on the original model, but I'm not going to worry about that too much. It's pretty clear to me that Xenoblade could not run on my Midnight Purple.

The opportunity to play one of my favorite games of the past decade anywhere and anytime I want is a very strong motivator for me. I hope it's an indication of Nintendo's intentions as well -- Wii ports are actually a great idea for the New 3DS. Mario Galaxy 1/2? Metroid Prime Trilogy? Of course I want to see brand new games as well for the new systems, but I think a handful of ports are an easy way to make an enticing offer that shows off the extra power of the console without offending 3DS owners by pouring loads of resources into development of exclusive games for a remodel.

The conversion of 18,000 Yen is 172$, I would assume they will likely go at it 1:1 so 180$.

The rest, I agree with entirely. I bought the XL right as they came out as I had never picked up a 3DS to begin with and had still been running on my DS/Vita. I ultimately sank the Vita on Ebay and got the 3DS XL from Ebay.

I think Xenoblade (and hopefully Pandora's Tower) is being ported up like this because it was a definitive lost gem on the Wii due to the time of its release at the end of the generation, its limited supply and near 100% sell-through when finally released in the states, and the general hype that surrounds it and the upcoming sequel. It makes sense for all the right reasons to see this game ported. Others, though, like SMG1/2 or the Prime trilogy were and are not in the same boat as Xenoblade, they had their time in the sun on better times for the Wii.

Well, if they can get some 3d movies working through netflix (like they said they would when the 3ds first came out) or some other service, I could forgive them for double dipping in my money. Although, at this point, I am still pretty freaking mad about it...

Im not sure if it will get many exclusives the the original dont get, but like it was said before, games will probably have better and more fetures. Like probably improved online was their primary concern. I just hope final fantasy explores is not exclusive, I dont want to buy another 3ds. Xenoblade I already have, so I dont care about that.