The 3DS strategy is unhealthy. Nintendo is focusing too much on tech and not enough on games.
Nintendo has the game making part of the industry wrapped up pretty well. Other than Sonic, and Master Chief, all memorable and easily recognizable game characters are from Nintendo. There are some others like Kratos from God of War, and that one guy from Tekken, who mostly all hardcore gamers would recognize, but you could probably show the average American house wife a picture of Link, Mario, Donkey Kong, and Kirby and she would recognize them all (though she'd probably call Link Zelda). She would probably recognize Sonic and Master Chief, but who else? There's even a pretty good chance she would know of the Brain Training games, WiiSports, and WiiFit.
Nintendo knows games!
When was the last time Nintendo made a game that wasn't the gold standard? Even WiiMusic which started off slowly picked up in sales when people understood the concept and fun of it.
I would list all the unique IP's Nintendo has successfully launched (quick mention of Pikmin and Animal Crossing because I personally doubted the validity of both and was proven wrong) but you probably know them. Metroid: Other M hasn't sold well, but I personally think that is because of using only the Wiimote, it makes it seem overly simple, like a dumbed down Metroid game, despite the fact that it's a good game.
My point is this: they don't need to focus on making great games because they know how to do that, and they still have people like Miyamoto who are passionate about game making and will make sure their titles are AAA. All they need to do to perfect the formula is attract more 3rd parties, and more 'hardcore' gamers, and the way to do that in this generation is through technology. While the N64 and GC were more powerful than the PS1 and PS2, the N64 used cartridges making it feel old, and the GC couldn't escape its kiddy persona. Being kiddy and technologically advance do not go together, and I guarantee there are still a lot of PS2/3 users who think the PS2 was more powerful than the GC, and that perception affected its user base. With the Wii, and its innovative controller, Nintendo opened up the Blue Ocean market, but in turn, closed itself off to the hardcore (non-Nintendo fan) market. A lot of gamers today are tweens who grew up with a PS1/2 in the house, not an NES or SNES, and their loyalties are with what's popular and perceived as cool. On the flip side of that, a few years ago one of my friend's younger brothers was upset with himself a few years ago for asking for a PSP for Christmas because only one other person in his class got a PSP, and 5 or 6 others got a DS.
Perception is everything, and with the 3DS Nintendo is not only making a bold statement, but they could be testing the waters for the Wii2, just like they sort of did with the DS and Wii.
Also, if Nintendo does some good 3DS/Wii integration, the 3DS could boost Wii 2011 holiday sales, meaning a E3 2012 reveal of the Wii2 and on sale by holiday 2012.