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Singular Nintendo hardware will be doomed to fail unless it has a miracle controller.

That's just what the market is. You can say "blah blah blah hardware upgrades, multiple hardware doesn't work" well guess what else doesn't work in 2015. The NINTENDO CONSOLE. Unless Nintendo changes the formula dramatically, they are not going to go anywhere.

Nintendo's own games IMO would scale fairly easily anyway. You look at the new Zelda game, and if you bumped that to 1080p resolution (or even beyond that ... 2K?) added in anti-aliasing and some better lighting shader effects, you'd have a game that would look on par with just about anything on the PS4/XB1.

I mean shit, Zelda: WW, a 13 year old game bumped up to HD with some redone artwork basically looks as good as most of their Wii U titles.

If you can take their internal games and scale them up and down, then the trade off there is worth it IMO because they won't have to make seperate games for console and handheld. Then you can have varying form factors.

The way the market is now, Nintendo has no chance of competing against Sony. What Nintendo fans are asking for is for Nintendo to basically keep doing the same thing over and over again and thinking it will yield different results. It won't. Even just sharing handheld and console games IMO won't do enough. All that will do is basically kill the Nintendo console as people who buy the portable will have zero practical reason to buy the console. 

Personally what I would reccomend is NX be a NEUTRAL BRAND. Not "here's the new Nintendo console with 1000 fruity mascots and a traditional toy design! It's the GameCube 3 basically!". Make the brand "NX" almost separate and distinct from "Nintendo". "NX" plays video games. "NX" is multiple devices. "NX" is age neutral, it's not "your little brother's console" that all Nintendo consoles get stigmatized as. NX just happens to have (wouldn't you know it) all Nintendo IP exclusive and Nintendo Virtual Console on top of other video games. 

Also the cloud computing patent Nintendo filed to me shows something far more ambitious than even what I'm proposing. If that's what Nintendo is actually doing it will completely change the traditional hardware market IMO. It will basically destroy the entire hardware model of the last 30 years.