Is this HW?
Phones are undoubtedly eating into handhelds, but 3DS doesn't fare too negatively against the original DS (the second best selling system of all time) -- I don't know how it is after the holiday, but in August it was only <10m behind DS at a similar point in its life. Considering the competition, and its weaknesses, I think that's pretty good. It's ~35m units ahead of Vita