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This might be used for a highly compact handheld that is meant to have a large screen but occupy as little space as possible in your pocket. It just feels kind of like a waste to me, though, to have LCD display in the areas where your hands will be covering the buttons. Plus I don't know how streaming or internet would work on this device unless they scaled the viewing area down such that the buttons and circle pads are no longer obstructing the viewing area.

Hopefully Nintendo has a something creative in mind to make this patent more useful. At this point, it doesn't seem like it has very many impressive applications to me.