The next Nintendo Handheld needs to be more powerful

[Soundwave]

To be honest though what's likely to sell more in the long run ...

1.) Cheap handheld, only about Vita quality graphics, sub-HD screen. Standard Nintendo price $199.99.

2.) Higher end portable. High end chipset, so much so that it can play ALL main Nintendo titles (no "little brother" Mario 3D Land, but all the real Nintendo IP including Splatoon 2, Mario Kart 9, Zelda NX, etc.). Can stream games to the TV or even a nearby tablet, so basically it can act like a mobile console. $229.99 or so but with sensible parts deals can scale down in cost to $199.99 after about a year. 

Yes, $30 is a huuuuuuuge difference in hardware budget. In mobile prices that means a massively more powerful processor.

I would advocate for no.2. Nintendo needs a product that genuinely stands out from cheap mobile tablets but is still affordable.

Also the notion of cheap = garbage hardware is well ... garbage. Nintendo has made many game systems that were cheap AND powerful. GameCube. Nintendo 64. Super Nintendo. Even the NES for its time was quite powerful for a home product circa 1983 (sure as hell blew the doors off an Atari 2600 which was the standard console of the time).

Nintendo needs to stop perpetuating this myth that you can't possibly make good hardware and sell it at a reasonable price. That's bull shit. Stop with the stupid expensive hardware gimmicks, stop letting the weird design niches of your developers take precedent on hardware design (Yamauchi never did this, Iwata let it get out of control). Enough with Nintendo's designers + Miyamoto running Nintendo's division like a bunch of kids in a candy store hoping to strike it rich with gimmick no.3948 and they need some weird exotic RAM only made by one supplier in the world. Enough. Get your freaking hardware division in line and slap some sense into them.