I'm not seeing how they get from point A to B in that scenario. You start giving people mobile games for F2P or a buck or two and expect them to jump into spending hundreds of dollars for dedicated games hardware and $20-50 for single games? It might open them up to a new audience but I'm not so sure how much they can expect that to overlap.
This is what I'm afraid of, a blood in the water type scenario. "Oh so I can play Mario whatever on my phone so why do I need a 3DS/Wii U etc". Of course they're going to make a killing on mobile, everybody knew that but the argument against it wasn't about short-term profits. Now I guess we'll see if this cannibalizes their handheld/console business at all.