I don't know the right answer is, in terms of overall impact on business, but one approach would be to limit mobile games to Virtual Console titles.

A unified Virtual Console across home console, handheld and mobile, would allow Nintendo to offer games at a price the market is willing to stomach without the risk of diminishing the value of the flagship games.

I think in order to make consumers buy them, Nintendo has to completely wipe emulators from smartphones, because if they can just get them from there, then they won't pay. However, the problem with that is that it costs time and in businesses time is money, aka they could use that time getting rid of emulators on other stuff like small-scale games like Captain Toad for example, which has been quite a sucess given its budget. But who am i to have a say in what they do, i'm not in the same business as them anyway :P

Nintendo does need to consider the mobile market, period. Must we go back to 1997 all over again? The need to stop underestimating other forms of media and devices and embrace them to an extent. Why did I say 1997? Well, because they thought CD gaming was a deadweight, they didn't adopt it. Then Sony buried them the entire generation. I love Nintendo, but they need to wake up and stop being stuck in the past ALL THE TIME.

Listen to them! If anyone knows anything about not quitting making hardware it's them.

yeah they should do smartphones for profit etc. but for gaming in general it would be a downfall with each step, each year..

This would also improve their profitability going forward. And if their next 2 consoles decline again they really have to enter the mobile market. They would make so much money it's not even funny.

Imagine the addictive nature of Animal Crossing, available to every person with a smartphone or tablet. It would be unstoppable. It's a perfect example of how Nintendo doesn't have to stop being Nintendo and making Nintendo games and systems in order to capitalize on the growing mobile market.

Animal Crossing probably be be one of the most suited games for mobile. It's really easy to place microtransactions in it. 

Exactly!  And I can think of tons of ways they could keep it a full game, yet charge for things that just aren't necessary.  One example would be paying a buck to make a tree grow all the way.  The game functions fine when you're just patient, but for someone that wants to speed things up they can, and it doesn't negatively affect anybody.  In fact maybe one of these days I'll do a write-up on my ideas for a mobile AC.  It could work so damn well and fully maintain its integrity.

There's that and the fact that if they were to throw some NES games on there then what's to stop more than just NES games?, I look at this from a consumer perspective, I'd want all the games, if Nintendo so much as drip feeds a few games then I;d want the whole kaboodle, it;s the same thing with JRPG games getting released on Steam, because they are selling and becoming popular PC gamers are wanting more and more and that's natural for how things go when you start drip feeding.

As much as I;d like to see Nintendo branching out I;d rather they not into mobile, mobile gaming is absolute crap and as casual as anything could get, I;d rather Nintendo not taint themselves with the mobile market like Sega is doing and Capcom tried to do, keep their games exclusive to their handheld and give more people a reason to own one than going with various cancerous mobile methods.