No 3D, no backwards compatibility, no dual screen, use every inch of the device to make a powerful handheld.

Cos that worked so well for the Vita. :P

Worked for GameBoy. And for mobiles.

If they are after mainstream crew, they care for those things.

Also, Vita's library is the meaning of niche.

It was a totally different market back when the Gameboy ruled.

Consumers in 2016 are not going to drop over $200 for a dedicated portable gaming system when they can play games on the phone they already own. Expensive high-end hardware would be financial suicide.

And the market has changed again. That's why the rejected the 3DS, That's why it failed to grab the mainstreams, That's why they had to do a big price cut after release.

The financial suicide will be releasing another gimped device like the 3DS, and the same can be said about the Wii U.

The Gameboy Color and Advance both sold like gangbusters and all they did was up the specs and tech. They don't need to do what you're saying to do well as long as they keep making compelling software. As Al Nilsen likes to say, the name of the game is the game.

As long as there's physical buttons, their devices will always be able to do things smartphones can't lol

Well to be fair, Vita wasn't a failure simply because it was powerful.

A high powered dedicated portable released this year or next would sell far worse than the 3DS and financially wreck Nintendo.

They would have to either sell it at a loss and haemorrhage money, or jack the price up beyond what anybody but the most hardcore fans would pay, and have sub-Vita sales.

If it's about as powerful as a 360/Wii U (roughly) ... they may as well make it a micro-console too (as in you can use it as a mobile console). Make it run Android apps too (as per that Nikkei leak). I mean it would be easy to make it stream to the TV right? Or even have a physical mini-HDMI port. 

This would add lots of value to the device which is the key. Just crapping out a cheap handheld won't work, parents aren't stupid they know $199.99 is not cheap with $40+ games when Android tablets are $129.99 or less these days with free games.

Nintendo needs to change the value proposition they offer, if the leading point of a dedicated handheld is that it can play "real games", then they need to emphasize that more and widen the gap between Android/Apple tablets and what they offer.

NX Portable - $229-$249, can be used as a mini-console AND a portable (can your Android tablet do that?). Also runs Android apps and tons of Virtual Console titles (GCN and Wii and Wii U too). Bundle it with a free Amiibo + Amiibo game. Versus a $199.99 3DS XL, this a waaaaay better value. Slightly better than Wii U graphics.

NX Console - Now, this would be a different proposition, as the console market has changed so much (ie: dead in Japan), make the console a higher end product for adult players primarily, because that's all that's left of the console market. NX Console can play all the portable games (so it can play all the Nintendo games) at better graphics. But it can also run high-end ports of PC games/PS4 games with even better graphics. 3 TFLOP+ and upgradable so Sony/MS can't cut Nintendo's knees off 2-3 years with better hardware. $349.99 for hardcore gamers first and foremost.

Most/all Nintendo games run on both the portable and console, the portable just runs them at 720p with lower end graphical effects, if you have the big fat console, they run in 1080P to 2K/4K resolution with added effects. 

I think this would be a good balance. Budget/kid gamers can get the portable and with the added value of being a mini-console that can stream games to your TV. Japan would go crazy over this model. Older hardcore gamers can get the console, if you have both great. US/Europe would probably prefer this model.