They are going to make a lot of money with mobile games. And with amiibo and amiibo cards. And they will still make money from their console AND handheld and of course there is software as well. And don't forget all the money they have at the bank.
Whatever they do next generation, they'll be fine. They have money for some generations ahead, no need to worry :)

Fairly sure their cash reserve has been halved since the start of this generation.

But it wasn't because they lost all of it; most of it was just... replaced as I've understood it, so they still have a ton of cash to fall back on

What games have they released so far on smartphones?

No, they're partnering with mobile devs to expand their marketing and exposure, just like when they partner with TV show devs.

No. It isn't.

It was always a move to supplement their revenue, and to direct new customers to their systems. Iwata said as much.

Basically the mobile push is a huge non direct ad, for people who want to activity ignore TV ads, and kids who don't know game consoles. But it isn't a 100% fall back plan. Think of it like the Nintendo DS. It was originally there as a test run for Nintendo. The GBA was intended to stay active for longer.

But they got lucky, and ended the GBA early. Because the sales of the DS took off. That's luck. Nintendo is doing the same thing now. It wants 3 pillars to be used as a whole. And would only replace one, or both of them, if Mobile can make the billions it needs for the companies current size. Which also can't be fully trusted. Or Zynga constatnly restructuring and firing people wouldn't be happening.

It's their backup in case their next handheld fails sure. I suppose you could argue that they're looking to insure secuirty overall as well, but it has more to do with the death of dedicated handheld market.

I agree with you wholeheartedly. But, I wonder, with the mobile market being freemium and .99 cent software, how can they sustain business with prices like that? Will we ever see a huge zelda, or 3d Mario game again, because they're not making em for 99 cents.... there's alot of unanswered questions with nintendo going mobile...... IF they go mobile.. because right now, what they're doing is more of a marketing tool then it is actual games. As far as I know, they've not released an actual game on mobile yet, have they?

They can't. That's the restructuring. If the main audiance of mobile is use to .99 cents. Most people will not budge on that. So Nintendo can't make those games. And for the other side. People who by consoles, and see Nintendo make mobile stuff. You'll think it's gonna be that crap. And not even look at it. Also, for the lack of real controls. So they lose both sides.

They have to restructure, and never make their types of games again. Since they'd have no market for $40 games. Some games are undoable also. I don't think people would lvoe playing Halo on a phone, as an example. And if they go microtranactions. Again, hate will erode people away. It's why it's difficult to use mobile as a platform for console games in the first place.

Don't bring console ports into the mix. Those games are long been paid off before. It's like people saying everyone should just make shows on netflix. Yes, have one company in the world pay for every single TV show out there. They'd go under. Or do what people don't want. Raise the price of Netflix defeating the point why people like it. And, or put ads. Again, defeating the point why people love it.