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What do you think of this:  Instead of making a Nintendo phone, why doesn't Nintendo start manufacturing I-Phone protector cases that come with buttons and circle pads?  Nintendo could then start up it's own proprietary game shop that requires the use of these buttons.  I think this might allow Nintendo to continue selling their games at the $40 price-point while still allowing them to enter the smartphone market.  This also helps Nintendo to still keep it's hand in the hardware world and it resolves the issues associated with buttonless gaming.  Nintendo would also be wise to spend a lot of time designing these protector cases to be stylish and attractive... something that parent's would want on their phones even when they are not gaming...