The Sega Master System was backward-compatible with the Sega Mark III.
The Atari 7800 was backward-compatible with the Atari2600.
Game Boy Pocket, Color, GBA, and GBAsp were all backwards-compatible to original Game Boy (which should be obvious for GB Pocket since it was just a streamlined GB).
Those are a couple examples. Nintendo is not unfamiliar with this concept, and neither is the game industry.







