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How come the Nintendo 3DS's actual 3D feature flopped with consumers? I don't get it, I loved it!

Nintendo was sued for using it. I don't remember the particulars. I think part of the agreement was for them not use it.
That is not correct.

The Wikipedia entry for Nintendo 3DS summarizes this legal dispute.

In a nutshell, a former Sony engineer named Tomita sued Nintendo in 2011 for infringing on a patent that covered a 3D screen without 3D glasses. In 2013 a US federal jury found Nintendo in violation, but the original reward was halved then finally the court decided Tomita should receive a percentage of each unit sold. In March 2018, an appeals court determined that Nintendo had not violated the patent.

Note that all this time, Nintendo continued to sell the device with the 3D display, finally discontinuing it in September 2020. There never was any stipulation that Nintendo had to quit using the feature.
 
That is not correct.

The Wikipedia entry for Nintendo 3DS summarizes this legal dispute.

In a nutshell, a former Sony engineer named Tomita sued Nintendo in 2011 for infringing on a patent that covered a 3D screen without 3D glasses. In 2013 a US federal jury found Nintendo in violation, but the original reward was halved then finally the court decided Tomita should receive a percentage of each unit sold. In March 2018, an appeals court determined that Nintendo had not violated the patent.

Note that all this time, Nintendo continued to sell the device with the 3D display, finally discontinuing it in September 2020. There never was any stipulation that Nintendo had to quit using the feature.
Like I mentioned, I didn't remember the particulars.
 
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