If they fail I think they can go 3Rd party and be very profitable.
Pros:
1. No R&D hardware costs
2. Release their software to a much bigger audience on PC/XBOX/PS
3. Their dedicated fans who used to play on WiiU / NDS will play there
4. Release their handheld games on mobile
5. Develope proper FTP versions of their mobile IPs to complement the premium versions
With this model I struggle to see them not being financially sound going forward.