I can largely agree with what you have posted and I honestly think it would work out fairly well (at least better than the Wii U has). However, I have to point out a couple things.
Going up against the PS4 and ONE for the core audience would not end particularly well and I can only imagine making modest gains, moderate at best. I'm not saying that I have a better idea because I do not know how to recapture the "casual audience" or create a new one. I would take the same approach but understand this would be the greatest obstacle. Appealing to third party developers would take a concerted effort but could pay the greatest dividends. Perhaps co-produce games with other studios a la Sony Santa Monica? I know that they have a mixed track record (especially as of late) but their collaborations have produced games like Flower, Journey, Sound Shapes and The Unfinished Swan.
I think that $399 would be too expensive. At that point the PS4 and ONE could be half the price which would be a disaster.
As others have already pointed out, using a standard PC architecture would make emulating WiiU games very costly and difficult. I honestly don't think the benefits of WiiU compatibility would out weight the costs.
I have to make an additional point and I can not stress this enough. They have to improve the online experience. When I log into Steam I am greeted by the majority of my gamer friends and can select from hundreds of my favorite titles which I purchased for a fraction of the original retail prices. It's fast, simple, convenient, reliable, feature loaded, content rich, affordable and light on DRM. It's not perfect though but it was good enough to stop me from pirating software.
As I said, Steam isn't perfect and Nintendo could make improvements if they weren't an inflexible relic who are, to put it kindly, a bit out of touch. I would love to see them turn things around and I can't imagine how much I would spend on the ideal Nintendo experience. If I could purchase all of my favorite NES, SNES and Genesis games for a dollar of less I'd treat it like Steam. I'd spend hundreds of dollars on it, countless hours of my time and I'd recommend it to everybody I know. Being able to play those games online with my friends with mod support, achievements and the like and I'd never stop playing (in turn I'd never stop paying).







