Are those accessories you pointed out really considered hardware in the other hardware category though.  Also those non-electronic accessories (cases, stylus, screen protectors.. etc) are mostly made by 3rd parties and may or may not be licensed by Nintendo.  Even if they are licensed Nintendo still only gets a fraction of the sale, and if not licensed they may get nothing.  So I don't know how much they would actually contribute to Sales if they are indeed counted in the other hardware category.

As for the 20M consoles vs. 100M handhelds, it's really more like 80M controller ports vs 100M handhelds.  Nintendo has had 4 controller ports standard on all their consoles since the N64 for a reason.  Local multiplayer has always been popular on Nintendo home consoles.  The Gamecube was also the first Nintendo console where buying a memory card was a necessity since they had previously been using cartridges.

Because both the 3DS and the Wii U (or the 4DS and the Wii 3 in next generation's case) each have a 3D Mario, 2D Mario, Donkey Kong, Mario Kart and Zelda. And I would put good money on a lot of people buying those games for both platforms this generation. If they have a hybrid console, the NH1, next generation there's no guarantee that every 3DS owner and every Wii U owner will buy the NH1, and even if they did Nintendo will lose out on the software revenue garnered from buying those games I listed on two platforms for the next generation.

There will be two "platforms". Maybe even three. Hell maybe even four. They will all just play the same games. Same way the iPhone/iPad/iPod Touch all share the same apps basically, even though these are seperate devices. 

Nintendo can make 2 Mario Karts per generation if they want under this setup (for example) or they can make their standard one Mario Kart and then put that dev team to work on making something new. Which might actually be refreshing and give them a shot at a new type of break out hit. 

But Nintendo would be able to effectively double their software output (per platform), spend less time work on the differences between two platforms (and making some games multiplay like Smash). This would push hardware sales more strongly and allow them to do whatever they wanted. Additionally, the platform would have all of the appeal of a handheld and all of the appeal of a home console, so they would be able to increase their potential user base. They would spend less money on R&D and they would be able to focus more marketing efforts into the console...

Overall, I think the benefits far outweigh the negatives, for both Nintendo and gamers

Ok, listen. People have been were saying this when Nintendo released the N64 and the Gamecube, after the success of the NES and SNES people thought the Big N were loosing touch and should get out of the console business. Then the Wii came along and we all know how that turned out. Now the WiiU I would not call failed just yet, it's still pretty new and we just have to give it time! We started to get that with NSMB 3D world and more importantly with Mario Kart.

People are so hung up on graphics and seem to forget all about gameplay... and to be honest gameplay is one of the areas Nintendo excels in. Nintendo even now that I am 34 years old still gives me the same excitement I had as a kid when I pop in a Mario game! As much as I love gaming on the PC or PS4, none of them do that for me.

Another thing is with the WiiU people absolutely have to stop comparing the console to the XB1 and PS4. They have to! The WiiU is a fantastic compliment to XB1/PC setup or a PS4/PC setup! I know many people have it as there number 1 console and that's great, but it is absolutely the best secondary console on the market because of it's library of games. Nintendo actually has a pretty unique opportunity here.

Again, people need to stop with all this BS last Nintendo console crap! Nintendo will make another console and they will continue with handhelds. Who gives a flying fuck about graphics when the gameplay is top notch! If I want eye candy I can look to my PS4 or PC... if I want games that when boiled down are about the fun and excitement I had as a kid playing my NES/SNES I will look to Nintendo.

no way is it a failed attempt, yeah the wii u doesnt catch the eye like the xbox and ps4 but it has its own audience (a big one) and they have a history of success. the wii u is a great machine in its own way the same as any other.

So apparently the Wii, NES, and SNES don't exist now? Also yes they will because
A. All their consoles have made a profit so far (except Wii U but it could turn around.)
B. They have pride and will probably make a revolutionary console next gen
C. They're Nintendo. They'll die before going 3rd party
And I wouldn't have them any other way

+1 on that!!

The SNES was launched almost 25 years ago now. The NES will be getting up on 40 years ago soon. 

The Wii is the only success they've had in a big way since Sony has entered the business, and that was more of a temporary fad based around motion gaming thats since fizzled out and/or evolved into cheap, simple smartphone gaming.