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Right now it would be a mistake. However, it is a fact that the market for dedicated gaming handhelds is shrinking and thus Nintendo should take steps to prepare for the time they will have to go to the mobile market.

Even if Nintendo is able to release another generation of handheld consoles, I believe is their best interest to transform into an entertainment company. Mario will be less known as smartphones and tablets take a larger piece of the market. Nintendo could use some of their cash and create theme parks, movies and TV shows to keep their IP popular. Just expand the Pokemon business model to other IPs. Nintendo is the only game company that can take the Disney's path and the should consider doing it.