To be honest, I think Wii U honestly killed Nintendo's dedicated home console division. It was the final nail in the coffin, Nintendo was never going to do the whole "lets make a PS4 Neo/Scorpio killer" thing either anyway because the GameCube failed trying that strategy.
Either they needed some kind of new unbelievable gimmick to fall into their lap and even that, VR is probably the new big gimmick for the industry, and Sony got to that first and it doesn't fit into Nintendo's needs for various reasons (expensive, not kid friendly, not family gaming centric).
Utilizing chip advances in the mobile field to create a hybrid device I think was always the fall back plan.
They can make a lot of money taking a 30% cut off all Android apps ... I think that Nikkei report was always correct and Nintendo is using Android (albiet a forked, custom version of it where they control the eStore). Nikkei has been right about almost everything they report about Nintendo.
