According to Bloomberg Japan, Nintendo is now selling the 3DS at a loss, something the company hasn't done with hardware for a very long time. Nintendo CEO Satoru Iwata has said that the uncharacteristic move was necessary in order to perform better fiscally in future.
Analysts believe the PlayStation Vita and its $250 price tag may have caused Nintendo to change its plans, though pressure from the mobile space must surely be taken into account as well. The world of handheld gaming is very different to the one the original DS entered, and Nintendo has apparently just caught onto that fact.
While I've been having fun with the news, it really is fascinating to see Nintendo having to react rather than act. After five years of taking everyone by surprise, the company appears to have been a little shocked itself, and it should be quite a spicy battle for portable gaming dominance this holiday season.
Nintendo Incurring Loss on 3DS Hardware [andriasang]