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snowdog said:
This 'hybrid' console isn't going to happen. If they did this they would lose a small fortune by cutting their revenue from software sales in half.


Software sales wouldn't halve though. They'd probably increase if anything. 

They could still have multiple hardware iterations -- a tablet, a smaller handheld, a VitaTV like home console (and make money off controller/accessorie sales here).

What would be central to it though is a iPod/iPad/iPhone style centralized game structure, where you can sell the same games on all of the hardware iterations, just like Apple's iOS app store. 

Take for example a game like Super Mario 3D World. Right now it can only sell to a maximum of 6.5 million Wii U owners (give or take). If Nintendo's 3DS could handle Wii U graphics and they had a unified store architecture that allowed them to share games though ... suddenly that same game can now be sold to 50+ million consumers (44 million 3DS owners + 6.5 mill Wii U owners).