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If they can get 200-250 GFLOPS of performance in a 3-5 watt package, IMO that's a go for a mini-tablet sized product that can approximate/port the 10-15 "important" Wii U titles that anyone would really care about at 540p or 480p resolution, no?

The XBox 360 is 250 GFLOPS total and that runs most/many games at 720p, so running most/all games at 480-540p (at this level of visual fidelity.

I don't see the handheld really being a 'portable Wii U' as no one really wants that. If it was powerful enough to handle ports, I think the appeal for Nintendo there is that they could port games like DKC: Tropical Freeze that didn't sell perhaps as much as they would have liked on Wii U and get a second chance at selling those games again (hopefully to a larger userbase this time around).