It's an extension of the Nintendo DS formula. Except the top screen is the TV and the bottom screen is embedded in the controller. The controller's cost will be a huge factor. It could be as much as $100 ... or more.
Nintendo just needs to make a phone. A Nintendo DS with a cellular antenna that's free after carrier rebates. How could that not work? Every kid would get it. A lot of adults, too. If you really wanted an iPhone or Android, you could just buy a normal Nintendo DS. There's so much opportunity there, it's baffling. Even if all it did was play Mario and have the same features as a flip phone it would sell.