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So, basically an overpowered handheld and underpowered console? I don't see how that'll be competitive at all.

I also don't have any market research/data, but my intuition tells me that the handheld market mainly is for young children who don't have a smartphone yet (the only portable computer they have is a DS), and that consoles are for both young children and young adults. I don't see really see the gain from merging the two categories together. They already have the young children, and I think Nintendo can protect their ownership on that segment.

I don't see, again, how an underpowered home console and overpowered portable is going to bring in the young adults.