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JustBeingReal said:

Right now no one is providing the kinds of games you can play on your TV at home on the move, with a native, latency free experience on the handheld. This could actually be Nintendo's opportunity to return to their former glory or at least lay the groundwork for a future where they can become competitive once again. With a family of systems that they can evolve to meet the capabilities of the competition, capable of running multiplats on the move, along with Nintendo's own great core experiences and potentially new IP that are more catered to the west it could really be the thing Nintendo needs to get them back in the race.

If Nintendo comes out and says oh we have this new system that can play games just as well the competiton, gets all of the multiplats, but if you want you can also buy a handheld that will play all of that on the move too and if you want to own both, having a bigger experience on a big TV at home, but also take it with you and own a collection to works on both systems then that could be huge and it would be something unique to Nintendo.

School kids could be playing COD on their NX Handheld, then carry on playing with their friends at home on the big screen.

As for the last part, the handheld would only need to be the size of a normal tablet. Cost wise I doubt it would even need to cost that much, the console would be comparable to PS4's price in late 2016, assuming NX has the same size HDD, Bluray and so on, the handheld would use a cut down version of the console's processor, so would cost a fraction of that price.

Maybe $200 at launch for the handheld and $300 or $350 for the console.

You could insert Sony on every Nintendo word and PSVita on NX-Handheld and it's clear that it wouldn't work. Sony (or the Media) even marketed the Vita as Portable PS3. One could say it wasn't too easy to port games over due to too different architectures. 

Let's assume Nintendo goes with AMD's Kaveri/Carrizo microarchitecture, they could make a Handheld version with 2/3GB RAM that runs games like Witcher3 in 720p on a low-medium preset and 1080p High on a 8GB home console.  But the thing is is there really a market for this? Who plays games and then decides to take them with them on a train. This only makes for good promo videos. I know a lot of people who are too embarrased to play 3DS on a train/ in public (stupid I know). 

PLUS, the biggest issue: Do people really believe Nintendo would stop selling 2 different games? The Company that charges you for transfering your Wii roms to a WiiU. There's no way they'd just say "ok instead of selling Zelda on 3DS (45€), and Zelda on WiiU (60€), we'll just have a 70€ hybrid!"