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I doubt it is pride and more that Nintendo knows if another company takes ownership of them they won't be Nintendo any more. The Nintendo people love will dissapear, maybe not overnight but slowly and surely until they become a mere brand name and nothing more. Nintendo is unique and the games industry will be a lot worse without them.

At the end of the day Nintendo has realistically had one bad financial year, it's not the end of the world. Regardless of smartphones/tablets Nintendo will survive. Over the next few years Nintendo wiIl get stronger again fueled by the Wii U & 3DS. The share price will recover. Maybe not reaching it's peak but then it was probably over-valued anyway. Although it probably will be a good idea if they maybe re-released old titles on smartphones, e.g super mario bros, or maybe developed some small games, pokemon would work quite well I think. Nintendo hardware/software is symbiotic, take one away the other will wither, if you cannot see that you are blind. Nintendo will be able to keep making hardware as long as they make software because nobody can match their software and that fuels the hardware. I still believe, and always have done, that the 3DS will break the 100 million barrier. If that's not success I don't what is.

Also, why shouldn't they look down at smartphone/tablet games. In the traditional sense they are not proper games. That doesn't mean they are not fun or engaging or lack depth per se but you cannot have an experience like Super Mario Galaxy or Legend Of Zelda: Ocarina Of Time or Super Smash Bros Brawl or Super Mario 3D Land on a smartphone.

Why do people insist on this continuous rubbish of Nintendo being doomed, handhelds dying or Ninty financially going down faster than Titanic.