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I saw this on NeoGAF and though I'd post it here as well to see what people think.

http://blogs.barrons.com/techtraderdaily/2014/06/10/amds-papermaster-moshkelani-talk-wearables-infrastructure-server-chips/

The quotes that are making people think this, "Another area of interest for semi-custom is handheld gaming, believe it or not. “Everyone thinks it is dead, but the [Nintendo] 3DS is still selling.” And this, "“Has to be at least $100 million annual revenue for us to go for it,” says Moshkelani. That’s a minimum, he explains, not a target."

A couple of points here.

1. How powerful could it be using AMD? Could they get it to around Wii U level?

2. What about backwards compatibility? It was my personal understanding that both the next handheld and console would be backwards compatible with the Wii U since they are using the Wii U as a starting point for their unified architecture.