Disclaimer:  I'm not an owner of Nintendo consoles, I don't like or play the majority of the games Nintendo produces, but I recognize there are people who do.  This is not a troll post.  This is a serious post regarding the approach I believe Nintendo should take with the next generation of gaming.  I believe this because I believe mobile devices are where people are headed and where Nintendo's strength is.  With that in mind, for your consideration.

The strength of Nintendo is in mobile gaming systems and innovative hardware, but Nintendo still needs to maintain a market within the household to seriously compete with Microsoft and Sony.  Only the mobile gaming market available on smart phones can eclipse the success that Nintendo has had in this territory.  Therefore, with hardware becoming smaller and faster, combine the portable and home console into one.  Create a powerful mobile gaming device the size of a SmartPhone or PS Vita, possibly even a SmartPhone/Mobile Gaming Platform, that docks with and/or interacts with a base station. 

Much like a laptop and the docking stations widely used in the 1990’s, the docking station would provide connectivity to hand-held controllers, the TV, disc-drives, device storage, and the Internet.  A low-power CPU would also be in the base-station to allow for basic functionality, such as playing movies, music, or accessing online services, but the true gaming power would be in the mobile device. 

Using hand-held controllers, gamers can play games either on the mobile units storage or the local storage.  When in proximity to the base station, the mobile unit can access the base unit’s Internet connection to play network based games, or access online services. 

or some people will view it as a white flag on the Console Front.

But they aren't necessarily abandoning the home console, they would be redefining it.

If you can put the power of a home console into a mobile unit, give it all the functionality needed to play the vast majority of games you offer, but still allow it to play games using the Wii Mote, nunchuck, Wii Fit, Pro Controller, etc have access to additional storage and games media, why wouldn't you do it?

If your device provides all that functionality of a home console when it's docked, but you can also take it mobile, I think you win next generation.

then really it isnt a home console anymore if its so mobile.....beats the purpose....

Due to your description being slightly vague, it doesn't sound too bad of an idea. However, throw in things like support, community reception, price point, marketing, etc and then it may sound worse of one.

I think many people are making a connection between the Wii U and this, yet Nintendo doesn't seem to want something like this to happen. The Wii U is purely a console based of the success of motion controls and tablets. Not to make a tie between the HH and HC markets. (Or so it seems, as of now at least.)

Isn't this happening already? They already merged departments.

Nice, would be cool!
when u come at home, the base will render at 4k resolution for your tv, the off-play tv will be there still
and it also could accept all previous controlls, and also wii U retrocompatibility, so offline multiplayer(the great caracteristic of nintendo home consoles) will be there too, with the same assimetric gameplay, brought in wii U,

Would be very good if the price are still going to be lower than other consoles and smartphones(great part of 3DS sucess come from price). Maybe the base could be sold separdly
But i think that even in 6 years, it would be very expensive to put ps4 hardware in a handheld...
but i like the idea.

Nintendo still sells 3DS' because phones lack Nintendo games (officially). Nintendo could release their own smartphone/portable-console fusion, and since they don't aim for profits as big as, let's say, Apple's, they could sell it at a lower price, unlike the iPhone's obscene price and profit margin. And Nintendo also gets more profits from the games.

Nintendo just needs to stop using their heavily customized hardware, that costs them much more on R&D, only to get not-so-stellar results. They should start using more standard hardware.

well considering next gen will have like a 128gb of RAM how will they fit this into the portable?

A PS3/360 level hardware in a "on the go" tablet style device will probably be feasible soon. One that could be taken outside of the house, but also wiressly transmit a video signal to the television for play at home.

I actually think Nintendo already has a working prototype of this idea in their R&D labs right now.

It's just too expensive/bulky/battery sucking right now, but in 2-4 years it'll be ready for prime time.