The dedicated handheld gaming hardware market is shrinking every year. I do not think that trend is reversible, because of the simple realities around it. Most people do not care about gaming the way we do, and also do not want to carry around fifty devices. If they can have a phone that also plays games that cost $1-$10, why would they need anything else? For them, that's adequate.
What's happening to Nintendo is cutting them off from all corners. The VR revolution coming is going to subvert any future plans Nintendo can have to surprise people on the home console front. What else can Nintendo do for a home console? A handheld/console hybrid? That's the only thing I can think of, and it may help them for one single generation, but it's just delaying the overall trend.
The handheld market is drying up for gaming dedicated hardware. People focused on the Wii U's problems, but their report showed a drastic reduction in their forecast for 3DS and sales of 3DS software and hardware are seriously lagging behind now compared to past trends. How do they turn this around?
The problem is I am not sure there is a real viable solution that would just fix Nintendo's home console or handheld business. Whether it's next gen or the one after that, the realities eventually are going to crush Nintendo's hardware business like a twig. They have to figure out a new model for their business or I don't know what will happen.
What strategies do you believe they can implement that can avoid this without going smartphones or whatever?
Well why couldn't it be F2P?