LOL. Yes, let's turn a mobile phone into an immobile massive controller.

Pretty sure that was a flop. I am well aware of the many attempts to merge the mobile and gaming market with physical input, but none of them have succeeded.

Nintendo joining the mobile market may be a good thing for the mobile market, pushing hardware to take physical input into consideration... but I highly doubt it. I'm only expecting Nintendo to make touch-friendly games specifically made for mobile gaming, rather than porting their other console/handheld games and undermining the one hardware field they're dominating in.