I really doubt it. The switch came out in 2017. The 3ds is a forgotten relic to the generation of kids who are growing up on the switch and getting their parents to buy the first party games. There’s certainly a niche for retro gamers, but if I were Nintendo I’d be more worried about the steam deck taking that audience.

Yeah, I am not sold that it's a real financial threat to Nintendo. It could be! or not. I don't think there's enough public information to be able to say.

However - having followed Nintendo for many years - I feel confident that that is their thinking in pushing this update.