DIgitimes does not look like the kind of site to just spew "fake" news, not saying the accuracy of their source/reporting is 100% but I'm inclined to believe that they have valid reasons to report this.
As much as I would like a core system released in fall 2017, I think the days of people revealing systems 16months before release is long gone and we know NX is getting revealed 2016, we also know the 3DS needs a replacement at least in Japan. The whole tech industry has moved towards short reveal to release turnover. Nintendo will be the last to the party but I do think they'll be joining. So a Q1/Spring reveal like the PS4 and X1 had, followed by a full blowout at E3 2016.
20m shipments imply a console/handheld Hybrid. 2016 release means they can't compete with PS4/X1 directly, nor can they succeed them, so will be interesting to see what they do.
A $250 handheld with a home dock for HDMI and additional console support can work (controllers not included) . Hopefully if this is the route they go, the home dock will be upgradable. How much would a 2Tflop box (no HDD, no disc drive) cost in fall 2016, something like $199?