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To be honest how is Nintendo even going to justify another "big box" console?

If their next machine is basically just a slightly better PS4, by 2017, more than 70 million people will own a PS4 or X1.

The Nintendo machine will just end up being a Wii U-2 in this scenario ... too little, too late with not as many games and will largely be ignored by third parties.

A handheld platform that has "console quality" (by console quality I mean like adequete PS3/360 level 3D visuals with some fancy lighting/shader effects thrown in and 1GB+ of RAM) which can be played primarily on the road but also on your home TV is less of a dead end for Nintendo. At least something like that could be reasonably successful.