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It'd already be at least 5 years too late for a Nintendo tablet. At this point they would register as little more than an also-ran. Not to mention the Android OS isn't exactly smooth or well secure, and Nintendo certainly wouldn't want something that could be easily hacked.

Tablets were always transitional technology at best, and it's only a matter of time until they are replaced by larger phones and smaller laptops with disconnectable keyboards. Handhelds may have faded from the days of the DS, but they are at least distinct enough to appeal to a niche, profitable market that won't be going away any time soon. Nothing else, not even a tablet, can replicate the 3DS experience, buttons and all.