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They said something about it redefining what it means to be a game console.

My guess is this will be similar to the Wii or Wii U (take your pick) and not a "conventional" type of console. Weird/cool/crazy/wacky controller + unified OS + average/low specs is what I'd expect.

And they really can do whatever the hell they want now. With smartphone games giving them a steady future second revenue stream now, the pressure is really off Nintendo.