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Yeah agreed, even for third parties I think they prefer this setup.

Nintendo in the past: the handheld had all the userbase, but the console had the power to run more modern types of games.

Instead of 10-20 million Wii Us/GameCubes to sell to (lets remove the Wii, because that was largely driven by casual gamers that had very different tastes and since Nintendo hasn't been able to hold them, they likely no longer factor into the equation).

Versus ... 50-60 million NX owners, even assuming another round of decreases from traditional handhelds. I'd rather sell to the NX model than the Wii U-3DS/GameCube-GBA model, where if I make a console game for Nintendo I have to live with the fact that 20 million or so is the audience roof.

50-60 million is enough customers to get at least some decent third party support, if you go beyond that, even better.

Look NX is not going to be a PS4 killer most likely on the console side. It probably will never even get close to the XBox One due to the three year head start the other will have. But if it can leverage the Japanese 3DS third party support and add more Japanese support because it has the power now to enable like a Resident Evil 2 REMake and Dragon Quest XI to come to the system (for example), that's a good start. I don't know if Nintendo will get all the great Western third party games, but I think the likes of EA, Ubi Soft, and Activision will come back with some OK support if the userbase is more in line with the 3DS.

Not every dev needs a gun to their head to optimize every game perfectly for each platform either. There's nothing wrong IMO with some games simply being just built for the handheld spec and then running at 1080P + anti-aliasing + 60 fps on the console.