Nintendo has gone on record as saying that they will develop completely new hardware revisions for emerging markets. This is in lieu of simply selling cheaper versions of its existing hardware such as the Wii U and 3DS. This news comes from Nintendo President, Satoru Iwata (via Bloomberg).
“We want to make new things, with new thinking rather than a cheaper version of what we currently have,” Iwata said in Tokyo today. “The product and price balance must be made from scratch.”

Iwata goes on to say that Nintendo will not become a mobile developer any time soon. He said, "we have had a console business for 30 years, and I don’t think we can just transfer that over onto a smartphone model."

These new hardware devices are expected to be released as early as next year in these new markets. If this pans out, Microsoft may not be the only one of the three major studios setting their sights on releasing gaming hardware in China.