Actually yes, they were low risk. Making money on every unit sold (Vs. losing hundreds) is low risk regardless of how big a gamble the gimmick is. I'm not sure what the numbers were back for DS or Wii, but estimated hardware cost of the 3DS is ~$100. Adding manufacturing (probably ~$2 per unit in Chinese sweat shops), and distribution logistics (packaging, shipping, retailer cut)-- all things considered, Nintendo are probably pocking $80+ on every unit sold. Remember before the splooge fest as E3 last year, there is little doubt Nintendo was targeting $199, and there would have still been profits in that. $250 is just gravy. With like 3-5 million units sold already or shortly (up to $400,000,000+ in potential profit), they're likely close to breaking even (if not profiting) on the set up costs and R&D. Only advertising might still have them in the hole. They know their brand and franchises are almost a sure bet of x number of units sold, so even if Wii or DS had bombed in the long run, they would have come close to breaking even.