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I think 540p and 1gb ram is enought.
they could put ps360 visuals on a screen of that size for a cheap enough price.
i think cheaper is better now, for handhelds.
also, with low specs, batery go longer.

id include a option to conect to the home console and play on tv with higher resolution.

And knowing the history of nintendo handhelds resolution, ill be happy if we get 540p, lol