Anyone else think this was a bit of an over-reaction? Yeah, the 3DS was over-priced, but $100 price drop is steep. IMHO, the biggest thing hurting 3DS sales was the software lineup. This big of a drop to me is a sign of Nintendo saying, "We can't sell you on the system's potential, so we'll just make it a bargain."
Not at all. As you just pointed out, the biggest thing hurting 3DS sales is the software lineup... In order for that issue to resolve itself, the software lineup has to improve... and that won't happen if developers lose faith in the platform and avoid making games for it.
We recently lost one high profile 3rd party game already (Megaman Legends 3). No matter what Capcom may say, it's just naive to assume the 3DS's low installed base didn't have at least
some influence on the decision to scrap the project. If other developers follow suit, we could easily have a domino-effect on our hands.
Just because other Nintendo handhelds may have experienced similar early software droughts doesn't mean the situation is the same. 3DS sales have been unprecedentedly slow for a Nintendo handheld-- so much so, many analysts are already predicting its doom. The 3DS is Nintendo's highest priced handheld to date and released during bad economic times to boot. Since it's pretty clear that the economy is going to get worse before it improves, and when you factor in the upcoming competition from the competitively priced PSV, Nintendo can't just sit back and do nothing and expect the 3DS to keep developer support.
This is a
very appropriate move on Nintendo's part, and not an over-reaction by any means.