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Soundwave said:

This is basically what I came up with on a cost basis ...

Nintendo Budget Tablet (Nintendo Touch)

- 3DS GPU + ARM Cortex 9 (dual core) CPU + PowerVR G6430, basically a 3DS + an iPhone 5s chip customized for gaming performance. 

- 6.3 inch LCD, 1280x720 single screen, no 3D. Not the greatest screen quality but far better than the Wii U controller or 3DS screens. 

- Runs custom version of Android per Nintendo's specs. Main menu has Miiverse plaza when you boot it up. Nintendo controls which Android games are allowed and also charges a Nintendo "tax" on games so they get their cut of the action. So $2.49 for the standard Android game, maybe $9.99 for things like Minecraft and Final Fantasy III. Nintendo pockets money on each download. Facebook, Instagram, Google Maps, WhatsApp, Twitter, Netflix, Hulu, Youtube, and many more apps can all be free however. 

- Full Virtual Console support (NES-N64, GB-GBA, DS) and also 3DS support. Requires a control cradle to play games in vertical (DS/3DS) mode, but many 3DS/DS games could be reworked quickly to be able to play in horizontal mode. $2 for NES games, $4 for SNES, $6 for N64, $15-$25 for DS, $25-35 for 3DS. 

- Ships with "Nintendo Learn" software. Basically a mashup of Brain Training, Art Academy, and Louvre Museum. Point of this is to make it seem like more of an "edutainment" tablet that kids can sucker their parents into buying (way cheaper than a iPad too), lol. 

- Price: $179.99

That's actually pretty powerful too, a good deal past the Vita. 

This late in the piece there is no point using an Cortex A9-based processor, A9 is nearly 7 years old now (remember the Vita has a quad-core A9). If you want to go with power you are better off with A12 which is around 40 % more powerful for the same power, or A7 if you want similar power but lower power consumption. I also wouldn't put such a weak CPU with a PowerVR G6430 either, too imbalanced.  But the general idea though sounds solid, Nintendo has so much value tied up in their catalogue that they seemingly don't want to use, VC could be so much better utilised and that could bring people back to Nintendo games.