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snowdog said:

Because both the 3DS and the Wii U (or the 4DS and the Wii 3 in next generation's case) each have a 3D Mario, 2D Mario, Donkey Kong, Mario Kart and Zelda. And I would put good money on a lot of people buying those games for both platforms this generation. If they have a hybrid console, the NH1, next generation there's no guarantee that every 3DS owner and every Wii U owner will buy the NH1, and even if they did Nintendo will lose out on the software revenue garnered from buying those games I listed on two platforms for the next generation.


But Nintendo would be able to effectively double their software output (per platform), spend less time work on the differences between two platforms (and making some games multiplay like Smash). This would push hardware sales more strongly and allow them to do whatever they wanted. Additionally, the platform would have all of the appeal of a handheld and all of the appeal of a home console, so they would be able to increase their potential user base. They would spend less money on R&D and they would be able to focus more marketing efforts into the console...

Overall, I think the benefits far outweigh the negatives, for both Nintendo and gamers