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I think the fusion idea is a good one for the simple reason the Nintendo doesn't have enough games to split between two consoles as long as they have relatively bad 3rd party support. If they focused on one system they could easily pump out 4+ big exclusives a year.

The only problem I have with the hybrid idea is that I doubt they can make a console as strong as current gen while also being portable (For a reasonable price of course). Perhaps in about 2 years the tech will be their but they would still be over a generation behind the PS5 in performance. Then again, maybe that will be enough for them...