Nintendo won't release a "real" 9th gen console.
The console will simply be the portable chipset thrown into a small box ... same thing as Vita TV (which is just the Vita chip).
I could see them maybe making the home version have 2-3x the CPU/GPU cores and RAM so the handheld games can be displayed in nice, clean 1080p on the TV though.
The plus side to this is such a box would probably be extremely cheap ... sub-$200 to start with and probably could be sold at $149.99 very quickly.
Though to be honest I don't think it would be the worst thing in the world if Nintendo just conceeded and agreed to make games for say the PS4 if Sony agreed to waive all licensing fees, let them make their own custom PS4/Wii U hybrid, and helped out with marketing (they could threaten to go to Microsoft if they don't). That and Sony could help them with a handheld that might scale into things like tablets and even cell phones, where Nintendo would control the majority of the royalties (not like Sony is making a ton off Vita anyway, so this would be a win for them too).
Being able to sell Zelda and Mario Kart to a userbase of 100 million gamers, and not have to worry about soccer moms would be a load off Nintendo's back and they could continue to make their own portable hardware (in that arena, Sony would agree to assist Nintendo). Sony could push those IP like they pushed Destiny.
In a world where Nintendo has to compete with Sony, Microsoft, and Apple/Android, turning one of them into an ally rather an enemey would be a big help IMO. But I think Miyamoto and several others are too stubborn and would see this as a sign of their own failure to accept such a result though.
