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The other thing that I think could be possible is the concept of a "stackable" chipset ... meaning the handheld and "home dock" could connect together and share hardware resources. Wired connections like Thunderbolt are incredibly fast these days.

I think something (combined HH + home dock) in the range of a

Quad-Core ARM CPU (becomes an 8-core CPU when linked)
Dual-Core SGX PowerVR Series 6 (200 GFLOP approx, 400+ GFLOP when "linked")
2GB RAM (becomes 4GB RAM when linked)

Plays games at Wii U+ fidelity on handheld at about 480-540 resolution on the go. But when you have the home dock you can play at home at full 1080p resolution.

I can see that. Handheld for $200, home dock for $120 or so.

The fitness/quality of life stuff will become Nintendo's second pillar. I'd bet this setup would make more money than the dated current Nintendo console that only Nintendo fans want + old fashioned Nintendo handheld setup which has lost them money for 3 straight years (probably going on 4).