It may have suffered from a slow start, but analysts are confident the Nintendo 3DS has "turned the corner".
Industry experts believe the price cut and release of key first-party titles have dramatically improved the handheld's prospects for 2012, according to Eurogamer.
"It's very successful, but ran into a headwind given its relatively high price and lack of third party software support," said Wedbush Morgan's Michael Pachter.
"Now that we are seeing more first-party titles at a lower price point, sales have increased. It's definitely turned the corner."
EEDAR vice president Jesse Divnich added: "With the strong rebound in 3DS sals, I think Nintendo is clear of the woods for now.
"The 3DS' slow start surprised us all, but once they announced the steep price cut we had little concerns that they would rebound. At such a great price, backed by strong first-party content, it shouldn't be of any surprise they were able to turn the corner."
However, Screen Digest's Piers Harding-Rolls warned that Nintendo still needs to work hard to maintain this momentum, particularly in the face of competition with the upcoming PlayStation Vita.
"2012 will be crucial for the platform, as its sales momentum will decide how third-party investment in content development will be prioritised," he said.
"We expect the 3DS to continue selling, but Nintendo faces an increasingly competitive landscape and the hurdle of convincing third-parties to invest in the platform."
The analysts added that 3DS is unlikely to catch up with the original DS' lifetime sales of 150m units worldwide, and that it will be interesting to see if Vita can survive at full price where 3DS struggled.