Satoru Iwata explains why the 3DS doesn't offer everything a smartphone does.

Over the last five years the growth of smartphones, mobile phones that replicate many elements of a home computer, has been exponential. At a recent investors meeting one investor commented on all the things smartphones can do and whether or not Nintendo would consider offering the same with the 3DS.

Satoru Iwata responded by highlighting the differences between a smartphone and the 3DS. He stated that "Nintendo is not a company which has yielded results so far by directly competing with other companies in that way [copying others]", instead they try and find new approaches rather than replicating others. He also talks about trying to encourage owners to still enjoy the 3DS while also owning a smartphone, rather than trying to create one device that does everything.

Mr. Iwata also adds that while Nintendo could create a 3D GPS system to use within your car this would take time and effort away from creating new enjoyable experiences for the 3DS, rather than replicating existing experiences available elsewhere.

We have made some achievements by finding new points which most people did not really pay attention to and showed that by changing only one condition, the value for consumers can change drastically, or by finding valuable things which only Nintendo can do, and by so many people all over the world accepting these ideas. If we try to tackle every ten functions a smartphone has, our power will be split, we will be in a difficult situation in each aspect, and as a result, we might be on the back foot without pleasantly surprising our consumers.