I don't agree with every part of this, but it's definitely smarter than the "Nintendo should abandon hardware" articles.

Nintendo doesn’t need to go where its customers went; it needs to get them back or find new ones. Not having games on iPhone is not Nintendo’s problem. This is Nintendo’s problem: For the last few years, it has been attempting to use ~$250 game platforms on which you must pay $40-60 to play a game to compete with ~$250 game platforms that give you infinite games for free. Nintendo cannot win this fight. When consumers look at a 3DS and a Kindle and decide they want to play games on the Kindle, it’s not because of the hardware, but because that hardware is a magic portal to a world full of free entertainment. For Nintendo to stay relevant, it must develop a strategy that can legitimately compete with that reality.