The vertical position is interesting! If I was to design a portable gaming system I'd give it exactly that mechanic. The handheld would feature a slide-open mechanic to give you access to the lower screen and buttons or could be used in screen-only mode:
- Hold the portable in one hand for smartphone style (no buttons, just one screen, like a smartphone)
- hold it horizontally to play hybrid games (no buttons, one screen)
- Slide it open to reveal the second screen, buttons and control sticks (DS style)
You could play Pokemon with one hand on the bus while standing, play it in widescreen mode once you found a seat without being embarrassed (looks like you're playing on a smartphone after all!) and when you get home you slide open your handheld and continue playing with buttons. Of course, software would have to switch seamlessly from one-hand mode to horizontal mode to dual screen mode.
This would give Nintendo the opportunity to release DeNa's smartphone games for its portable console (after all, you can play on it like you play on a smartphone) and show that dedicated systems are preferable: Some games will be smartphone / handheld multiplatform releases but controlling the games on your dedicated device is way easier, because of the second screen and the buttons + control sticks. At the same time the handheld would attract mass market ("casual") customers with games that can be played without the use of physical buttons. It would be easy to understand, like the DS was. But core gamers would still have all the features they want.
Take Mario Kart as an example: Smartphone gamers can play it with one hand (like some people preferred the Wii wheel in Mario Kart Wii). Hardcore gamers will slide the handheld open and make use of the control stick and the map on the bottom screen.









