Seriously, stay with me.
Nintendo's in trouble. Their drastically reduced sales predictions (down 70%) for the Wii U seem to spell doom for the video game legend. While 3DS continues to make a substantial claim in the market, Nintendo's larger console hardware is losing out. Most commentators would suggest PS4 and X1 are the Nintendo's lead competitors. A more accurate nemesis is the iOS systems, which has reached a level of ubiquity that Nintendo can only dream of.
If it's not careful, Nintendo could go the way of Sega and the Dreamcast. Nintendo will need to draw on a certain amount of bravery that they have previously not possessed and make clear, innovative decisions. To hold tight in a battle for console hardware is suicidal. The 3DS is a good piece of hardware, and the only true competitor to iOS in the hand-held market. If Nintendo put it's money into it, and then gradually transferred to being a software company, happier days would lie ahead.
After all, Nintendo is best known for its software brands. Mario, Zelda and a host of other games are amazing, possibly some of the best in the last generation, but a large portion of gamers haven't been exposed to them because they've been exclusive to a piece of hardware that is unable to deliver anything else. This is also true for Pokemon, although it is not owned by Nintendo. If Nintendo committed to developing games for other consoles, including iOS, they would become leaders in gaming across all platforms, particularly mobile. One only needs to look at the Mario games of the last several years and marvel at the ingenious level design and innovative gameplay to realise their strength is in software.
I, for one, will be first in line.