NX to replace both Wii-U and 3DS? Rumor based on Iwata speech

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Even if we look at it logically ...

OK, so "traditionalists" who can't imagine the Fusion concept, their idea is basically this ... that Nintendo will just keep on doing what they've been doing for the 20 years or so. Well lets actually spell out what that means.

So that means a discreet home console about as powerful as the PS4. OK.

Then there naturally has to be a separate, discreet handheld. And since that will need a tech boost over 3DS, lets boost those specs up to Wii U levels, right?

OK, so pretty normal.

The issue with this is it's impossible to manage with modern development costs. Nintendo cannot supply enough software for two machines that powerful (neither would Sony or Microsoft).

Conservatively you need 7 games/year for each, probably more like 9-12 in the heavier years. Nintendo cannot make that many HD projects per year not with hardware at that visual fidelity.

Look at how much trouble Sony has had getting their software going on the PS4 alone, and they basically ditched the Vita already. Now imagine Nintendo trying to support a PS4 level system largely on their own and then also having to make games for a PS3-level handheld, which would require more attention because it would likely be the bigger seller.

And they can't rely on third parties to be there for them either. Bringing their handheld and console lines together and joining them is really their only logical play.