"Insanely Powerful Handheld?" Sounds like an insanely expensive device, talking $599 US dollars or more. Even being less powerful than PS5/XBwhatever, it has to be much more capable than Wii U (unless you expect a downgrade from their console for some strange reason), and a handheld that's a generational leap from Wii U in 2016 at an affordable price is not happening. Nintendo has probably already started to research on their combined architecture, there's nothing out there right now that's affordable enough to be considered "insanely powerful" even for handhelds. At best, I'd say that the Wii U successor will have 2015/2016 technology in it, as will the handheld. There's no way a handheld, launching with 2015/2016 technology, with more power than Wii U, will be affordable to the masses.
There won't be a " Thrii", there may even be an increase of form factors, as Iwata has mentioned clearly, there might not be just one handheld and one console. Why should they go the route of one hardware? How will they compensate for the loss of revenue they will experience? Not even a Wii-like phenomenon will be enough to compensate for both console and handheld revenue streams. Increasing output of software isn't going to compensate for their loss of hardware revenue streams, youre placing them in a worser position than they are now. Think about this for a second, this "insanely powerful handheld" will need to sell enough to compensate for both handheld and console hardware streams, we've seen firsthand how well expensive Nintendo hardware sells, this will NOT be cheap, it won't sell well.
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