The Wii was sold at a profit from day one. The PS3 was sold at a huge loss and only recently became a zero loss/profit machine. MS is still trying to make back the money they lost from the original Xbox.
Nintendo has made more money from the last Pokemon game than Sony has made off the entire PS3. (This is an exaggeration, but the idea that Sony is somehow doing better than Nintendo in any tangible area is hilariously backwards.)
You can't look at everything from the perspective of hardcore OG gaming nerdism. What keeps a company in business is money, and Nintendo makes way way more money than the game divisions of MS and Sony. The idea that they are so poor and down in the dumps that they'd have to be Sega-ed out of hardware betrays total ignorance of WTF is going on with games.
Will Nintendo make "a phone"? Short answer, yes. The definition of "phone" is changing constantly with actual "phone conversations" not even being that common anymore compared to everything else we do on a phone. A more basic question would be, "Will Nintendo sell a mobile data enabled device that does a million things wirelessly, including possible voice communication?" And the answer is certainly "yes" because everyone is making those things or will be soon.