I am looking at it with unbiased eyes. Nintendo lost 200 million bucks last year because they missed the boat on the 3DS and they are losing money on each unit sold. They are hoping that by March, they will be able to turn a SMALL profit on the 3DS IF component costs go down. On top of that they are launching a new system. Unless they start making money on this thing, why on earth would they continue to support it?
So why did the PSP lose to the DS? It was pricier, and the games more or less suck on it. Smartphones are free, games are a buck. You are saying this is the same scenario? Why did the DS beat the PSP? Why do you think the 3DS will survive in the light of smartphones competing based on that experience? Please explain.
And I think it's funny you bring up Nintendo's loss (for the first time IN THIRTY YEARS - yes that includes the year of the aforementioned Virtual Boy and even when they were dead last in the console race) as proof positive they're going to fail but never mentioned that Sony and Microsoft have CONSISTENTLY posted loses of tons more money from their consoles
That's because the latter two are completely different companies. Sony lost money on its consoles as a strategy to get market penetration, they figured they would make money on the hardware later on in the life cycle of the units as production prices went down and they achieved economies of scale. Sony decided to lose money on the PS3 so that they could push Blu Ray and bury HD DVD as the premier media format. On top of all that, Sony isn't a game company, they can afford to lose money short term to achieve long term objectives - ditto for MS. Nintendo does NOT have that luxury, its a game company, all it makes is games and consoles, if its not making money from games and consoles, it goes out of business.
On top of that, how is the company going to turn around next year? The wii is dead in the water, I don't see it roaring back to life as a console. Do you really think people are going to spend 400+ bucks on a WiiU? It doesn't even play DVD's. Have you seen the ---steaming pile of meadow muffin--- the Xbox can do now? I am going to watch UFC 141 for FREE on XBOX live. What compelling reason is Nintendo going to give me to buy the wiiu? For 200 bucks you can get an xbox 360 with a connect.
Its not about the past, its about the future. Nintendo has NO cache. Think about all the great games that people were looking forward to this fall - Skyrim, Saints Row III, Call of Duty, Battlefield, Forza, Uncharted 3. NONE of them are playable on Nintendo hardware. The only game that has any buzz is Skyward Sword. Mario Kart 7 and the 3d Mario finally have given people a reason to get a 3DS, but what is coming out next year that is going to make me think the next year won't be any different than this year?