The 3DS is close to release, and with most people happy to swallow the $350RRP price point, the real issue is the price of the games themselves - especially in light of cheap mobile gaming - but Hideki Konno, 3DS Project Lead has come stating that Nintendo will "not be competing with that."
Nintendo President Satoru Iwata has already been highly critical of the current game market, and the way in which cheap disposable games are devaluing broader console experiences so, as you'd expect, Nintendo will compete with the smartphone market by attempting to create high quality content.
"We're not going to try to match that," claimed Konno, "we're just going to continually strive to not just maintain, but increase, the quality of the entertainment that we're providing, and let it sort itself out. Again, we're not worried about competing at a price point level."
It'll be interesting to see how successful the 3DS is in comparison to its predecessor. The Nintendo DS was released before smart phone use was ubiquitous, but how will Nintendo's old school concept of portable play wash in this new environment?
Personally I'm pulling for Nintendo. I love disposable portable gaming as much as the next person, but I'm hoping that the 3DS will prove there is still room for high quality, premium content in the handheld space.