How is this even supposed to work? The 3DS XL is $200 and the Wii U is $300 and the 3DS cannot handle most Wii U games. DKC: TF can't be ported, Mario 3D World looks a hell of a lot different from 3D Land, etc. etc.

Throwing around some term like "similar architecture" doesn't mean they'll be magically able to run the same games.

The iPhone and iPad use variants of the exact same mobile processors ... that's why they can share games/apps so easily, that's not at all what's being described here.

Either you want a Fusion system or you want a continuation of the current Nintendo setup of having discreet console + handheld, there really isn't much of an inbetween, too many people wanting their cake and eating it too. 

How is Nintendo supposed to sell a handheld that can reasonably run scaled down games from a console PS4-like in power or moreso for $200? Not before 2020 folks. 

The point I'm making is there will be a signifigant discount in buying both. $50 each off of two consoles selling at a profit won't be an issue.

Nintendo won't bow out of making consoles. There will always be a market and it's growing. Home consoles are Nintendo's bread and butter. Nintendo did the wii because that was the smart thing to do. This isn't.

Your kids will laugh at you when you tell them you used to have to buy a seperate box to play video games on your TV and you have to drive to the store to pay $60 for a physical disc copy of a game. There will be an end to the home console eventually. Nintendo did Wii because serendipity blessed them with a genius idea that was the perfect product for that time. It's lightning in a bottle, and it's an impossible formula to repeat. 

Without that, I don't think Nintendo has much of a future in the home console business. Every Nintendo console from the NES onwards with the exception of the Wii has seen a declining audience for 20+ straight years now. The writing is on the wall here, of course as fans we are often the last ones to see it because we don't want to see it. 

The 3DS XL isn't $200 technology. It's $129 profit tech being sold at a much more inflated profit. The Wii U is $300 tech being sold at a slight profit. And like I said a hundred times, they wouldn't be running the same games. They'd be streaming them. You just need enough horsepower to stream, like with the Vita to the PS4. And yes, similar architecture does mean they'd run the same games. There'd obviously be a down grade, but it isn't some magical impossibility.

There is an in between. What I describe is it. You seriously think there won't be moble PS3 level technology in 2016? We have that now dude. That's all it would need.

This is not what I want. This is what is most likely to happen. You're throwing in things I never said and misunderstanding things I did, because you want to be right, but you won't be, because that is financially retarded and Nintendo has done that enough to learn from it.

I'm 100% sure games will be all digital in ten years, but just like we still have computers even though phones can do most of what a PC can do, we'll still have consoles.

The writing is on the wall for Nintendo to change with the times. They'll do that. Home consoles, and especially Nintendo home consoles, aren't going anywhere for a long time.

Nintendo's tried the streaming idea this generation already to a muted response and the no one is interested in the PS4-Vita streaming either. I don't see anyone making a future console based around this idea, consumers have voted and overwhelmingly said no to this type of thing, why stream to a tiny 5 inch screen when you can play on your 50 inch TV while at home? Nvidia's version of this idea (Shield) has also been a flop also. 

They need a hardware setup that unifies their software library under one iOS-like shop that then allows the games to be played on different variant hardware. Like iPhone, iPad, iPod Touch can. Iwata has said this directly himself so take it up with him, lol.

No Nintendo hasn't, and no one cares about Vita streaming because it's already a flop with no must have games. Consumers voted no to the Vita, not to streaming video games. The console wouldn't be based of streaming, the design phylosophy behind a "fusion" console would just be reinforce by it, along with everything else. It's not the selling feature, it's just a feature. Nvidia is a flop because no one who games on a PC cares about streaming games on the go. No obscure niche periferal like that will ever sell well.

Iwata said what I'm saying, not what you're saying. He never said anything about playing theoretical 3DS games on your Wii U. He just said better synergy between hardware and software of both platforms. 

These are the actual relevant quotes from Iwata:

http://www.nintendo.co.jp/ir/en/library/events/140130qa/02.html

Still, I am not sure if the form factor (the size and configuration of the hardware) will be integrated. In contrast, the number of form factors might increase. Currently, we can only provide two form factors because if we had three or four different architectures, we would face serious shortages of software on every platform. To cite a specific case, Apple is able to release smart devices with various form factors one after another because there is one way of programming adopted by all platforms. Apple has a common platform called iOS. Another example is Android. Though there are various models, Android does not face software shortages because there is one common way of programming on the Android platform that works with various models. The point is, Nintendo platforms should be like those two examples.

Iwata cites the need for a unified software based platform which can then provide software to various "form factors" In fact he specifically says there may even be more than just the traditional two (1 handheld, 1 home device) hardware devices. 

And again more recently he referred I believe to this above concept as "redefining the definition of a game console" and that it would take approximately 2 years ... to me that's more than just another console that tries the same ol' "streaming" idea (which has overwhelmingly failed this generation). 

He was talking about the chinese console with the form factors. You can still have and iOS like platform with differing games. It would still redefine a game console because you games wouldn't be tied to the hardware, it would be stored on the cloud. The platform is not the hardware, it's the NNID. And again, steaming didn't fail, the hardware that streams failed. People didn't regect the streaming, they regected the Vita.