This is a shocker. Nintendo isn't usually given to dramatic moves, like cutting the price of their latest system by nearly a hundred dollars. Drastic times call for drastic measures, and the 3DS is struggling badly. More shocking: Nintendo will now incur losses on each sale. They have never done that before. They have always managed to sell their hardware at a profit; indeed, this is how they were able to thrive during the N64/Gamecube eras.
I still believe that the main problems with the 3DS handheld is 1) the headadache-inducing 3D display, 2) the enormously high price, and 3) the lack of any good games. The price cut will definitely help. Nintendo still has to address the 3D and software issues, and that's going to decide whether the system lives or dies.
As always, the 800-pound elephant in the room that nobody wants to discuss is Apple. The iPod/iPad is becoming a formidable system, thanks to the easy touch-screen controls (people are intimidated by 14-button controllers) and the low price for games. In our permanent recession, there simply isn't any play money to throw around. If I can have a really great videogame for only a couple bucks, then that's a win for me. People simply cannot afford $40-$60 game titles, especially when those games are nothing more than franchise copies of sequels of spinoffs of revivals. Snooze.
At this point, I don't think even Mario Kart and a new 3D Mario is going to help. I've already shelled out enough money for the same video games. I want something new. I don't see why that's so difficult. The current game scene is dreadful. I'm having far more fun burning another 200 or so Sega Saturn games, and, frankly, the Saturn games are far better than the overpriced schlock on store shelves today.
I think Nintendo had better change their strategy and fast. The problem is...I have no idea just what their current strategy even is. This is not the same company who gave us the DS and Wii Remote. They had better find a way to rekindle that lost magic before it's too late.