EricFabian said:
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Sure. Nintendo relies on 2 things for profit - their console and their handheld. The former will always sell poorly (the Wii being the exception). They can't go back to making a big profit on each system sold like they were before because consoles are more complex these days (with hard drive, wifi adapters, etc). They also don't have the brand to survive in the console space.
Handhelds are going the way of the dodo now - no one can deny that mobile is killing it. So, where do they go? I think them diversifying is the first sign that they're now thinking that having all their eggs in the gaming basket isn't a good idea. As their relevance in gaming diminishes so will their will to stay in that market (assuming their other products work).