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Illusion on 21 December 2015
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I think Nintendo making another handheld like the 3DS and dominating that traditional market is going to be a moot point because that market is going to become a lot smaller in the next few years. Who cares about dominating a market that only has the capacity to sell 30 million units? Nintendo does and should have higher ambitions than this. The current mobile gaming market leaves a lot to be desired and Nintendo can be the ones who create the next "cool" thing since the Iphone/Ipad. If Nintendo still wants to cater to old-schoolers like me who want a traditional handheld then they can always make a secondary model that does that. That said, their next gen of handhelds should set its sights towards bridging the gap between the mobile and handheld gaming world and addressing the shortcomings on both sides of that gap.

There is no doubt that the idea of a dedicated handheld is going to have to evolve over the next few generations. Nintendo is going to have to think long and hard about ways to continue justifying to gamers why it is important to have a second electronic device in their pockets next to their phones that's just for gaming.

Nintendo might go with a device that is a physical add-on to their phones (ie. "the shell" concept). Even more interestingly, I think Nintendo might develop a razor thin LCD device with on-screen buttons that can wirelessely interface with the gamer's phone and use the phone to do all graphical and processing computations. I believe that physical real-estate in a person's pocket is going to become increasingly important for future gaming handhelds as this will be what justifies to a casual gamer that it's worthwhile to carry two portable devices.

I think that this is the real question to ask: Nintendo needs to be looking for the next new thing, they can't be sitting back and massaging a dying market. Sticking with the traditional and familiar may be what we gamer's want but it is totally the wrong mindset to be having in business.