During Nintendo's quarterly review for the fiscal year ending March 2018 Kimishima said, "The Nintendo 3DS characteristics, price points, and play styles differ from Nintendo Switch, and we intend to continue the Nintendo 3DS business separately and in parallel." He added, "We will continue to use its installed base and rich software library in our business."
That means new 3DS games will also be coming out to the 3DS in the future, but that growth no longer appears to be the system's main focus. "We are, of course, continuing to develop new software, but we believe it is important to leverage the rich library of Nintendo 3DS series titles to drive sales with Nintendo 3DS owners, as well as consumers who recently purchased Nintendo 3DS hardware."
So it mostly sounds like Nintendo is going to focus on its existing library to keep consumer interest on the 3DS. Its position as a budget console instead of Nintendo's primary mobile alternative is now also clear in light of Kimishima's comments. "It is also positioned as an affordable product for budget-conscious consumers. We will continue working to promote Nintendo 3DS to these consumers."