If true and the kid friendly tablet is in the pipeline would we see Nintendo releasing some of the older SNES games onto the platform ? Or maybe some of the more educational titles seen on the DS handheld, being ported over.
I'm sure that Nintendo are worried about an open platform affecting sales of games, or indeed if Nintendo 'fork' Android in the same way Amazon have done with the Kindle. Either way they will need to address pirate apks all over the show, and alternate app stores from appearing on the device.
Could this start a race to get some cheaper gaming devices from Sony maybe creating their 'forked' version onto a Sony Z clone ? Of course Sony already have a mobile division and its no secret that Playstation Mobile Store sucks, so the same applies to Sony and to some extent Microsoft too.
Anyway back to Nintendo, I think this is a long shot, but it wouldn't be a shock. It would be a cheap way for Nintendo to kickstart some sales after the lackluster Wii U, which is still stalling. After all a small change to a free OS to fork it, put it onto a tablet with second generation hardware and stamp Mario and Nintendo on the tablet and you could find it sells like hot cakes.
I guess we should all wait and see .... consider the rumor flamed.