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I've mentioned this Ninty/MS partnership idea on vgc so I def. agree.  If Sony dominates the entire gen, I think  its a real possibility when you consider the reports of execs at MS wanting out of the HW biz.  The question becomes, their level of partnership & how willing  Ninty is to taking on a windows platform, in exchange for the now freed up (large) piece of 3rd party market.

But if everything remains as is, I agree with Pachter that there isn't room for a trad. Ninty home console.  What Ninty could do is marry mobile + home with the "Fusion" idea.  To compensate, the handheld would more powerful than usual Ninty releases, so I can envision a $250 launch with minor loss on hw.  The profits will come from a Ninty subscription service with access to its vast library & Home dock (optional). The dock or "terminal" would merely consist of a power cord, tech. that connects multiple fusions/controllers, hdmi out, cheap cpu/gpu enhancer, and possibly 500 gb  storage for $99.  The combo of the handheld + home dock would be at or slightly above current Wii U level performance.