No they are just taking what they are already doing one step further. Nintendo was the first to do this. They had connectivity between the DS and GC. You cannot copy something when you were doing it first.

Isn't this already happening? Miiverse has been moved to the 3DS and (I think) Smart Phones by now.

how will it work?
all games will have 2 specs? the console only and the handheld

but if the developers just do the handheld specs?

I just hope future gens doesn't imply hardware architecture being absolutely the same. If it does it may mean isolating themselves even further from the competition if the competitions is going down the path of PC architecture. I want to see Nintendo go down that path and not into mobile architecture used by android devices atm for the home console part of this hybrid.

It means many games will work on both (most Handheld on Console) and some console on handheld. Basically the articecture will be the same so the only difference will be horsepower.

It's not hard. They mean the Nintendo Network is going to be one unified thing, across both platforms, carrying over to future systems, and that most likely, you will also get some kind of app to access the Network from your mobile device, so that, say, you can start a download while you're out, and come home later to find it finished and ready to install. If they do things that way, it would work really well.

Nintendo stopped competing with Sony/MS a long, long time ago (in a direct way anyhow). 

I wouldn't be surprised if some of Yamauchi's final commands to Iwata were to never, ever (under any circumstances) get into a 1-on-1 battle with Sony or especially Microsoft. 

Mobile parts are getting pretty darn powerful these days though, but if you want top of the line graphics performance, that's just not going to be Nintendo. Time to just accept that and move on. Truth be told I don't think Nintendo has much interest in graphics much better than the Wii U anyway. 

I think Nintendo made it pretty darn clear today -- they would rather make fitness shakes and yoga mats before they attempt to get back into the console race and compete head in that type of way. Time to let that dream die. 

I don't think Nintendo has any interest in megabudget graphic driven games really either ... if the Wii U was magically as powerful as the PS4, I'd recoken that something like Mario 3D World would pretty much look the same, they would just use the extra horsepower to run it in 1080p with FSAA but that's about it. 

Sounds like they are going to unify the software, and make it so games are scalable. So you can design for one, and only have to make a few adjustments to have it on the other. It's pretty similar to how everything is going now.

It should theoretically allow them to lower development cost on games.

The sense I get is Nintendo would rather branch out into other businesses before trying to compete with Sony/MS. Iwata even said straight up they're not very good at competing, lol. I think internally Yamauchi laid down a business edict that Nintendo is to never get into a direct war with MS, they recoginize they are small potatoes and would not be able to compete head on. 

I think they're done with that concept ... that mythical Nintendo console that is competes directly with others died with the GameCube and it's never going to come back onto the table, we as gamers just need to enjoy the Marios/Zeldas as if that's not good enough for you, I don't think even Nintendo any qualms with anyone picking up a PS4 or XB1. Nintendo is just not interested in getting into that race anymore.