These are dark days for Nintendo, I think they just don't have an answer for how smartphone/tablet gaming has devalued gaming.
Even Miyamoto admits he is afraid that hand-me-down tablets are taking away the kids market from them. Casual market is pretty much gone from them.
And Sony/MS pretty much have an iron lock on the male 12-35 market.
That said I'd be in favour of Nintendo seeking a partnership with one of Sony or MS exclusively (for example Nintendo perhaps agrees to support one of their consoles with games if they agree to support their handheld with games and provide some monetary kickbacks) rather than ever going to smartphone route.
I think they will try and see how Quality of Life, amiibo, and the next handheld (fusion?) does before making a rash decision though.
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