It Iooks like sales of mobile gaming on smartphones and tablets has shaken up game giant Nintendo, There's a report out that Nintendo is merging its console divisions and handheld divisions into one to have a stronger focus on creating more innovative and attractive products.

A translation of the report reads:

"In an effort to create more innovative and attractive products, Nintendo Co. will combine the development segments for its home video game consoles and handheld game devices."

The timing of this news doesn't seem to bode well for Nintendo, as it has just launched its next-generation Wii U console. It looks like Nintendo is the first gaming console manufacturer beginning to show the cracks of the success of gaming on smartphones and tablets as opposed to console and television.

Nintendo believes this restructuring will spur more and more connectivity between consoles and portable gaming devices. Much in the way Nintendo's Wii U GamePad can also act like a second screen to the Wii U, and the dual-screen of the DS can be used as a secondary display for the gaming handheld.

Nintendo was hoping to see more success from the Wii U, since it did launch before Sony or Microsoft's next generation consoles. Unfortunately it didn't see the kind of numbers it was expecting. It's still too soon to see how Nintendo fares, but the fact that they are showing signs of being effected from smartphone and tablet gaming, hope it's not a sign of things to come for Nintendo.