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Soundwave said:

Take a Vita level chip. Add 25-50% more raw horsepower. 2GB of RAM. 

5-7 inch screen (depending on the form factor Nintendo wants). Single screen, buh-bye DS setup. 

$199.99 launch day price. That's cheaper than a 3DS day one. Maybe a home companion chip that lets you run games on your TV wirelessly (the reverse of the Wii U). 

Compatible with exteral controllers (like a Wiimote). Many people have kind of mentioned this already, so it's not all that inconcievable. 

I'm just looking at the repurcussions of what such a powerful Nintendo handheld would have. For the first time I think you'd have a Nintendo handheld that can run most Nintendo franchises with a fairly high level of visual fidelity and not have to compromise on a lot of things. 

I think once you get to 3rd gen 3D you start to reach a point, especially with the types of games that Nintendo makes (as they don't aim for hyper-realism) where the graphical fidelity is such that, sure you can go better, but what you have still looks nice. 

The $199 price sounds good. But I don't know how I would feel about a next gen Zelda game on a console with a Vita chip that has 50% more power. I'm sure graphics can be displayed in more ways than photo realistic art style and the next Xbox or PS will really outperform this hybrid system's graphic potential. Will the 50% more powerful Vita chip even be in the same level as Xbox One in graphics and power, let alone more powerful? 

And if you have time, can you give us an idea on how you can market a handheld game and its home console version on this hybrid system? Will the box say "Made for on the Go?" Or will it have something like streetpass function to encourage gamers to travel with the portable game?

This idea is interesting but too radical. It may seem logical to have a hybrid when home console nintendo systems sale poorly now and handhelds are doing okay but that doesn't mean to combine the two. Rol said it best, that combining the two not only combines possible strength but also weaknesses. I think the market's expectation for a handheld and home console is one of those weaknesses this hybrid will inherit.