Well if it releases early enough and is moderately successful it could definitely cut short this generation (although this generation was already meant to be shorter than the last.)
I can see their home console releasing Winter 2017 (handheld version releasing early 2017), Sony and/or Microsoft announcing their new console(s) E3 2018, and releasing them Winter 2018. That would give both the Wii U and PS4/XBO five years on the market.
That is actually beneficial to Sony/MS because the hardware in their platforms is becoming outdated, and third parties want more.
As for power, I can see the next nintendo console capable of something like 3-5 TFLOPS, and Sony/MS capable of something like 8-10 TFLOPs (about the difference between an r9 280x-r9 290x and an r9 390x-r9 295x2 in terms of performance.) Nintendo's next platform will be 1080p 60fps capable with current gen features, Sony's and Microsoft's 1440p/30fps capable with more advanced features than current generation. Just like the gap between the Wii U and PS4/XBO is smaller than that between Wii and XB360/PS3 so will the gap between NX(Console version) and PS5/XBTWO be smaller than Wii U and PS4/XBO.
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