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OdinHades said:
They should go for 1080p at the very least. The resolution of other devices will only get bigger in the future and Nintendos next Handheld should be around for some years to come, until 2020 or something. So if they don't want it to look completely outdated at the day of its release, 1080p is the way to go.

Next Nintendo handheld coming 2016/2017 and 1080p resolution isn't realistic, 480p-720p probably.