I'm sure the idea has been brought up before on this site, I've certainly heard it here. Anyway, I'm pretty sure Nintendo doesn't want to alienate their massive preexisting handheld fanbase. And besides that, making it a phone and a handheld results in probably having to water down or complicate a few things, from the OS, to the interface, to even the phone itself, physically.
Nintendo might be on the verge of practically having a monopoly over the dedicated handheld console market after this gen. They won't let that slide.
bet: lost







