Check this article
http://www.bbc.co.uk/news/business-14337301
To paraphrase Nintendo reported its first quarterly loss and it's cutting the price of the 3DS from $250 to $170.
The 3DS sales aren't meeting expectations as the technology seems to be getting old because it relies on cartridges, whereas the smart phone technology which is newer relies on an OS and a UI like iTunes and Android Market. The newer technology seems to offer the user more convenience, but as you can see by the discounted price Nintendo can offer a more attractive price point which may avail itself more to a demographic composed of children.