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Personally I think the gamepad was a terrible idea, they should have gone in the opposite direction and been everything a tablet isn't. But if they had to go the touchscreen way, then I think they should have made the gamepad a fullout tablet with Android but a Nintendo Store (like Ouya has a Ouya store not Google Play). It'd allow remote play of your console games and direct play of all the e-shop games (and other Android games - which Nintendo would profit from if they are selling through their store)

But this sort of OS thing is NOT Nintendo's strenght and would be a huge distraction for them (look at how much trouble they are having with WiiU's simple OS). Overall I think it'd be a bad idea as it'd cheapen the value of Nintendo's IPs. I mean, really, would you still pay $30 for Brain Academy, Rhythym Heaven or Wario and Watch if you have free - $15 apps? Unlikely. This devaluing is happening anyway but no need for Nintendo to shoot themselves in the foot. But it'd still have sold 10x's better than what WiiU is doing now. Even at a higher price point.