These are just rumors but if Nintendo really are going in that route then I think it's because they can't compete with either Sony or Microsoft ...
Nintendo can't match the production values that the HD twin offers, can't match them in terms of software output or software support, can't match them on a technological front, can't meet up with customer expectations and hardly get anything right these days so I can imagine why Nintendo would quit on dedicated home consoles altogether when they have a very hard time figuring out why every subsequent consoles after the SNES failed aside from the WII ...
Let's face it, Nintendo is getting a serious beating just like they did in the days of the 6th gen but it's also their first time where they truly came out last unlike 6th gen where it was the Dreamcast that came out last ...
The odds are is the Nintendo is very much overwhelmed by their competitors who try everything in their power with tooth and nail's to win the game and it's just too sad that they can hardly do anything about it ...
