Just to clarify on the first point, when Nintendo or Sony claim a product is "profitable", they're often only referring to selling the console for more than the cost of its parts. When you take into account R&D costs and the massive fixed costs these businesses have (wages, electricity, rent, tax etc.), overall profitability is a long way off.
As for QOL... We don't really know much about it. The little information Nintendo have released so far give the impression that it is going to be an outdated amalgamation of Wii/DS era software (Wii Fit, Brain Age etc.) that won't attract anyone in a mobile phone/tablet era.
I think it comes down to whether it's hardware or just software. If QOL is a software suite for existing mobile devices I think it could have limited success. If it's a unique piece of hardware it will be a flop of Virtual Boy proportions.
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