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Soundwave said:

1280x720 screen should be cheaper than dirt next time out. If Nintendo drops 3D, that will save them a lot in cost, battery life, and processing power that 3D eats up.

If the GPU is designed to be in the ballpark of a Wii U, which certainly would be possible by 2016, then you want a decent screen on the thing.

A sub HD screen in 2016 when even $150 tablets will have HD displays will just be laughable, Nintendo can't live on their own island any more. Maybe when the more expensive PSP was the only competition, sure that worked, but in today's world flooded with tablets and smart devices, consumers, even kids know a cheap quality display when they see one.

Isn't feeding a 720p screen with Wii U quality graphics going to draw quite a bit of power by handheld standards, though, and lead to a lowered battery life?

Though I suppose falling short of HD will cost them the marketing opportunity to name it the "HDS". :P