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teigaga said:
They would shoot themselves in the foot in both markets. They'd have an overly chunky cumbersome handheld and a weak console


Console could be more powerful than the PS4 still if they wanted it to be. That's part of the beauty of the unified platform is the console is freed of having to be all things to all people, it can just be a damn proper console, let the other SKUs carry the weight with the kids/I want a unique Nintendo console crowd. 

People overwhelmingly choose the bigger/clunkier 3DS XL over the smaller model too, bigger portable electronics that offer bigger more premium experiences are where the mobile business is going (see: Apple's sales explode after iPhone 6 Plus, now an iPad Pro is apparently coming tomorrow).