Editorial: Is The 3DS Fundamentally Flawed?

I'm not an analyst. I never got further than introductory macroeconomics in college. As far as I can remember, a drop in price generally results in an increase in sales -- something that bodes well for the Nintendo 3DS in this upcoming holiday season. Based on a story we published yesterday, the price drop seems to be working, at least at GameStop.

Still, this rare bit of cheerful 3DS news was followed with a story today that suggested Nintendo is all but ready to go back to the drawing board on the 3DS. A story we just reported, originating at the same website that broke the news on the specs of the Wii U and Vita, says that Nintendo is looking at a couple of solutions to its 3DS problem: 1) a possible peripheral that will add a second analog stick to the unit (something that should have been included from the start) or 2) a new, redesigned version of the 3DS that will have "a new design, scale back the 3D effect, and possibly even have a new name."

That second rumor should be troubling to those watching the stunted progress of the 3DS. To me, it seems to indicate that the 3DS is not just a victim of a too-high price point or a lackluster software lineup at launch. The problem is that the feature that was to be the primary selling point of handheld -- the unit's glasses-free 3D display -- is not resonating with consumers.

Frankly, I haven't talked to one person I know in my daily life who really likes the 3D display. Most confess to turning it off for most of their 3DS gaming sessions, citing the problems inherent in having to hold the unit at a precise angle lest it start to blur, the occurrence of headaches and eyestrain, etc. It doesn't help that, so far, none of the software available for 3DS seems to integrate the 3D display into the gameplay and design in a really substantial way. Since players have the option of turning 3D off, the games are generally designed as slightly better looking DS games with 3D overlaid on top.

Simply put, the problem with the 3DS is that it’s a system designed to showcase a 3D video game display. So far, that's something customers don't seem to want. I'm sure, back in late 2009 and early 2010 when the 3DS was incubating, it seemed like a great idea. James Cameron's 3D epic Avatar was breaking box office records. Soon, it seemed like nearly every film was chasing Avatar's success with a 3D theatrical release. Television manufacturers and networks were jumping into 3D with both feet. ESPN, the ultra-popular sports network, announced it would be launching a brand-new 3D channel.

Just a year-and-a-half later, the landscape has changed. 3D movies have stalled at the box office. U.S. consumers have been slow to adopt the new generation of 3D televisions. What was promised to be a revolution in entertainment may ultimately prove -- much like the 3D boom of the 1950s -- to be just another fad. For Nintendo and the 3DS, that's bad news.

If the primary feature of your system isn't compelling to consumers, what's the path forward? Wii's motion control, for all its faults, was genuinely appealing to the audience. I wasn't particularly excited about Wii, but as soon as I saw my then five-year-old nephews having a blast with motion-control bowling, I understood that the console was going to be a massive success. They absolutely loved it.

I asked my sister if her kids had mentioned the 3DS, and she said she hadn't heard of it. The boys, having just discovered Pokemon, are perfectly happy with their DSs. Her oldest girl, also a DS owner, has grown tired of the system and is now lobbying her parent for an iPod Touch. The 3DS doesn't seem to be on their radar. Frankly, I take more stock in their opinion than a dozen industry analyst reports.

That said, I'm not ready to deliver a eulogy for the 3DS. Nintendo has a long track record in the handheld space and millions of loyal fans who loved the DS. With some of the more compelling software coming down the pike this holiday season, perhaps they'll decide that a somewhat-more-powerful version of the DS with wacky 3D effects is worth a purchase. The new, more affordable price point will certainly help nudge some of those on the fence towards buying. But I suspect they'll be buying it in spite of the 3D display, not because of it.