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There's no point replacing it, because there is nothing wrong with the hardware. It's advanced but standard phone/tablet hardware from the time it launched, and no one has complained about the form factor.

They just need to rebrand it with a bunch of new software. I suggest getting a Mario clone, Mario Kart clone and Pokemon clone made but with AAA budgets. They've already shown they're not going to catch up to Nintendo relying on third parties, and those 3 games require zero creativity, just follow the formula better than Nintendo did with their last entries.