Let's look at the numbers: https://www.nintendo.co.jp/ir/pdf/2018/180426e.pdf
Nintendo's breakdown for revenue is on page 14. Revenue from smart devices is grouped with IP-related income etc., pegged at ~39 billion yen. This means that Furukawa wants to get Nintendo's smartphone business to get about thrice as big as it was during the past fiscal year.
Dedicated game hardware (Nintendo's core business) brought in 1 trillion yen in the recently ended fiscal year, of which Switch brought in ~750 billion yen, 3DS ~190 billion and Other (Mini consoles, amiibo, Wii software, Wii U software) combined for ~70 billion.
Over time Switch will gobble up the 3DS slice of the revenue pie while growing the pie as a whole, so revenue from dedicated gaming will comfortably exceed the 1 trillion yen mark in each one of the next few fiscal years. This means that Nintendo's smartphone business won't even account for 10% of their overall business if Furukawa succeeds in achieving the goal he has mentioned. Said goal was already set when Satoru Iwata was still alive, so it's not earth-shattering news.
So that's $9,165,000,000 US for dedicated hardware vs $357,435,000 US for mobile. What would be the best ways for Nintendo to increase earnings from the latter?
After reading through the most recent Q&A session with investors, it's clear to me that Nintendo's strategy for smart devices hasn't changed at all. Their goal has been to release two to three smartphone games per fiscal year, but they've lagged behind that pace in the recently ended fiscal year which saw only one new release (Animal Crossing Pocket Camp). The strategy is to have games that remain relevant for years, so even with a low number of releases each year, Nintendo expects to have many important titles concurrently over time. So anyone who thinks this news means that Nintendo will pump out mobile games at a high rate to the detriment of their core business simply has no clue.
The number one priority of the smartphone business remains the creation of synergy with the dedicated hardware business, meaning more widespread awareness of Nintendo IP that is supposed to result in higher hardware and software sales for dedicated gaming. That this works has already been proven with Pokémon Go and 3DS sales that see only marginal decline each year and actually went up during the fiscal year that saw the release of Pokémon Go. Switch is a huge success, so everything's fine here as well.
The second goal of the smartphone business has always been the creation of a consistent pillar of revenue. For a company the size of Nintendo, 100 billion yen is about what should be expected for that goal to make sense. But as I already pointed out in my previous post, that's only going to account for a small percentage of Nintendo's overall revenue pie.
I would rather he had big plans for the Switch...
Furukawa said that Switch is his top priority during the Q&A session with investors. It's also worth to note that Nintendo has forecasted shipments of 20m for Switch which already matches the peak performance of the PS4. Such a number doesn't get forecasted in the absence of big plans.