The Smaller “New 3DS” Just Got Discontinued. Why?

This debate is one that began with the Switch announcement video in October.  Does the Switch being a better all around handheld spell the end of the 3DS line?  Will the entire dedicated handheld line at Nintendo slowly mesh with the home console line?  I think there were quite a bit of people on either side of the fence.  I was so close to making a final prediction before, but today, the answer became more clear than ever.

Nintendo is phasing out their New 3DS from production in Japan.  To clarify, the New 3DS XL and the New 2DS XL are both still going to be produced, but the smaller form factor version is getting phased out.  This is a signal that the Switch is their new handheld in a couple of ways.

First off, let's get the obvious one out of the way right now.  Discontinuing any product in a platform is a sign of a shift in focus within that platform’s ecosystem. It signals a shift in focus by the manufacturer.  They are using the resources that were once used in making one product and using those resources towards other things.  In the case of Nintendo, maybe that money saved is being pushed into software development? Maybe it is being pushed into a Switch Mini of some sort.  It's hard to say but one thing is for certain.  On paper, they have taken their focus from the 3DS and put it somewhere else.

Secondly, the form factor of the original 3DS was kind of its big selling point against the Switch.  it was something that you could literally put in your pocket.  You cannot do that with the Switch at all.  The continual existence of the small 3DS hinted at a future in the small pocketable handheld market.  That is now gone.  The 3DS XL has the footprint of a large cellphone.  A “phablet” style device that is larger than a lot of people are comfortable with in a phone.  The 3DS XL is something that you can’t fit into your pocket very well without large pockets, and even then it felt too big to fit very comfortably.

Elaborating on my second point, I think Nintendo is still attacking the pocketable market, but in a new and fresh way for them.  Smartphone games.  Think about it.  They have discontinued their small handheld in the same year that they start offering 1st party smartphone games.  Their new plan is to give people “pick up and play” experiences on a smartphone and make large and in-depth experiences live on the Switch.

With casual handheld players covered with very accessible mobile games, and hardcore handheld players satisfied with the Switch, there is now no room for a very small handheld to fit in the market.  The XL line of 3DS systems is a way to shift people into this mindset in a slow and subtle way.  Before you know it, carrying around a Switch in a separate case won’t be a big deal because you have had to do it with your 3DS XL.  Playing small games on a mobile platform is already baked into this upcoming generation’s minds and with a price point of FREE, they can expose people to their IP on a broad scale.

At first, I questioned Nintendo’s approach to the Switch and 3DS space, but now it all makes sense.  It is part of a slow and elaborate plan for their new way of play.  The next generation of Nintendo includes smartphones and tablets that connect to the TV.  With most consoles becoming more and more like low-end gaming PC’s, Nintendo is finding a way to stay relevant for years to come.