Cromat said:
Nintendo 3DS - $250 with $35-$40 dollar games
Apple iPod Touch 32GB - $300 with $1 dollar games
It simply is a terrible value proposition for most customers. The rules have changed.
Whether or not the rules have changed depends on most children, teenagers, and adults who bought a DS and millions of DS games suddenly want to mostly play tower defense, cut ropes, and fling birds as their primary form of entertainment.
The $1 dollar games may weed out the *actual* casuals. The people who are LITERALLY casual about wanting nothing more from gaming than a 2 minute distraction between power shakes.
Instead of most people who have played portable video game systems suddenly wanting nothing but what $1 games offer, I find it more plausible that these are overlapping but ultimately parallel markets. And the primary reason for the 3DS's slow start boils down to:
Price.
Horrible launch if you don't love fighting games.
Horrible advertising and marketing leaving people not even aware the 3DS exists as a discreet platform.
Nintendo got attention last E3 with the 3DS because the big reveal presentation pushed the 3DS as something new and it leveraged all sorts of content like 3D movies, 3DS netflix or similar services, etc etc. The 3DS had media hype and public attention for a short while because it was being pushed.
Nintendo then turned around and launched it with no mass market software, almost none of the promised features, none of the other uses to take advantage of the 3D screen, then took nearly 2 months to even BEGIN to update its components, and draw near the release of the first significant game. (Zelda.)
Oh and they didn't do anything to make it clear it was anything other than a DS with a 3D screen.
The iPod Touch could not even exist, and the 3DS launch would be abysmal.