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Can I just interject and say that the Fusion is just a bad idea all around? Too many elements pull against each other. In order to be cheap enough to not alienate both the home console and handheld audiences, it would have to be weaker than the PS4 and even then the price can't be but so low; let's ballpark it at $350.
Now, fun fact: no one buys a home console new that is a downgrade from the previous gen. There has never been such a home console that was successful. The Wii was more powerful than the Xbox and the Wii U is more powerful than the PS3. It's hard enough to convince people to pay $300 for something that cuts it close like the Wii U; how are you going to convince them to buy a downgrade for around that much?
But the bigger problem is this: the console at that price and those power stats (console weaker than PS4, handhled weaker than Vita) is going to appeal only to those who are into both sides of Nintendo. Someone just in the market for the handheld is going to be put off hard by the $350 pricetag and the home console being forced on him. The home console fans aren't going to be too happy about paying $350 for an anemic machine. Only those truly into both will want it. And given the sheer size discrepancy between the Wii U and 3DS user bases, clearly those demographics don't overlap all that much.
The fused platform only increases value proposition if you want both; otherwise it's just fluff.
And as for making it easier to support their platform with games, not really. They would be fusing two different demographics and having to appease both. So they still have to make handheld focused games (Pokémon) for that side and console focused games for the other. They would have more software in theory but the same amount in practice (ex: Fusion has 45 games, half home console, half handheld oriented. If you like both, you have 45 games to choose from. If you like only one you have 12 or 13 games to choose from.)
Frankly, it wouldn't help them expand their audience and it would alienate sizable chunks of it. It certainly wouldn't help in the US where the Handheld market size is smaller relative to its population than the home console market by a very large margin.
Anyway, rant over. Carry on. :P
PS: This is assuming the "handheld and console in one" approach where it is one product, not the idea of two interconnected products. Anyway, done now.
