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The idea is actually very good, Rol.
Seems like a very pragmatic proposition and a cheap one at that, too (something that Nintendo likes).

I think the only thing against it really is 3rd parties.

It's true that a lot of devs have dismissed Nintendo's consoles, but we can't overlook the fact that Nintendo's strategy for it's consoles - especially the home console - was nowhere near insync with 3rd parties of doing business.
3rd parties strategy was, although, perfectly insync with Sony and MS - or vice-versa.

Now,we know that Nintendo's strategy aside, companies like Ubisoft, Activision and some japanese companies will be willing to at least try and support at first.
And japanes devs won't hesitate to support Fusion even if because of the handheld market.
How will that work for them?

Imagining now that Nintendo's strategy is to have as much classic Nintendo titles as 3rd party-like titles.
That will create a market for 3rd parties if Nintendo is successful; 3rd parties will see that and will want to join in. Do they have the right conditions to do that or lack of space will stop them?

Nintendo needs to take care of what will happen but also of what can happen.
Doing things just for Nintendo's liking is what they have been doing for generations and look what that got them.