Nintendo is in the black as far as profits go.
http://www.nintendoworldreport.com/news/39514/wii-u-sales-up-3ds-sales-down-in-third-quarter
Nintendo has remained profitable in the third quarter ending December 31, but 3DS hardware sales are way down.
The Wii U sold a little more than 3 million units in 2014, compared to the equivalent time period last year in which approximately 2.8 million units were sold. However, the 3DS sales were down. While they sold 7.67 million units in 2014, this is down from last year in which they sold 12.89. The total 3DS sales for 2014 add up to roughly how many units of the system were sold just from October to December 2013. Wii U software sales were up while 3DS' sales were down.
Nintendo attributed the high sales of the Wii U with titles such as Mario Kart 8 and Super Smash Bros. for Wii U being released in this time period. Games that were steady sellers for the 3DS included Pokemon X and Y, Mario Kart 7 and Tomodachi Life.
I hate to say this but in general the 3DS really can't put out the graphic quality you are seeing on Mobile Phones. We all knew early on this was going to be a problem when it didn't look much different than the PSP.
Your talking about a vastly different time. When the DS was out only the hardcore had Smartphones really. Now they are relatively everywhere and to the point that there are hand me downs that are powerful enough to make 3DS graphics. If I had to choose between gaming on a mobile device that I already own that looks nicer or making the investment into specific built device that doesn't look as nice the choice is pretty clear.I hate to say this but in general the 3DS really can't put out the graphic quality you are seeing on Mobile Phones. We all knew early on this was going to be a problem when it didn't look much different than the PSP.
That means nothing for handheld gaming since the people playing on handhelds generally care less about graphical quality. The DS already proved that loud and clear and the 3DS complete domination of the Vita makes that even clearer.
Anyways no the 3DS wasn't powerful enough even for Nintendo if it was they wouldn't be rushing out New 3DS so soon.
... NOA's refusal to release it for the holidays.Given the supply issues with amiibo and other Nintendo products as well as other cost-cutting measures, it is a very real possibility that Nintendo as a whole decided against spinning up more factories and became supply constrained.
And beyond that, it's pretty standard for hardware sales to be on a downward slope four years into a system's life.
I heard that nintendo has enough money in the bank (from the golden age of gaming) to last 10 years if they went unprofitable for a while..