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If Nintendo is making another console in a traditional sense (not a Fusion device, which will likely just be mobile components like a VitaTV is) ... then the focus on making the console so small and power efficient is basically stupid.

*No one* cares Nintendo. The Wii U isn't selling despite being small, the GameCube didn't, the Wii sold because of a controller gimmick that took off like crazy for a few years, not because the casing was small. No one complained about the size of an NES and it's not like we live in hobbit holes.

If there is another console, Nintendo is simply going to have to accept that they will have to make it for Western tastes first and foremost. The Japanese console business is dead, time to move on.

There's nothing wrong with a console that's the size of an XBox 360 Slim or (gasp) even the PS4. You can also shrink the console over time, which results in sales boosts.