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Soundwave said:

I think they're going to have to sit down and have a real, brutually honest discussion about that, particularily as it relates to third party support and what they want. 

I've always thought thought if you're making hardware decisions based on what makes sense for your launch year ... that's very short sighted. Is this is a product that's supposed to be viable in 2018? 2020? 2021? Or is it going to be "well we choose this hardware because it seemed nice in 2016, but I guess it was kind of not a smart move long term.". 

Then I think you need to plan accordingly. Costs scale with time, and I don't think part suppliers are so short sighted either, if you're making a huge volume order for something that's going to mean 5-6 years of orders for them, they likely will give you a break early on. 

If Apple can make/ship 10x more volume and they're already on 20nm and heavily rumored to be moving even lower than that this fall, I think it's time Nintendo kinda evoloved on this issue. You cannot be that old fashioned in this line of business. 

If your partner is saying they can give you 70 GFLOPS/watt .. use it for crying out loud. If using that tech means you can have games like Dragon Quest XI and maybe even Final Fantasy XV and RE Remake 2 and Metal Gear Solid V ... it's worth it. Such a machine would have monstrous support from Japanese devs and probably even Western devs too ... at say a 960x540 resolution a 400 GFLOP processor (6 watts) being able to play even modern engine games on the go (and through the NX concept, to be able to play them at home too) ... that really could be a game changer for Nintendo and developers. 

Thinking on the long term is nice however you want to capitalize on the present. Thinking too far ahead can have some significant impacts like Sony aggressively pushing blu-ray and cell processor technology. That costed Sony on a commercial and technical front in a negative manner. Sony was right about blu-ray technology but at the wrong time however they were dead wrong about the industry adopting the programming model for the cell processor and that had some severe impact thoughout their 7th generation. Similarily Nintendo was pushing glass-free 3D technology and look how it costed them ...

If anything making a product for the future is short sighted so if one prediction doesn't come true a console manufacturer will come to regret it making that decision ... 

@Bold That is not true with chips today. If anything cost reduction won't come for quite a while so what you put out today will likely cost the same to manufacture in 3 years time ... 

Apple can afford to advance on new transistor technology when their selling new iPhones for $600 but the same cannot be said for Nintendo and their often cost effective handheld devices ...