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I don't think Nintendo necessarily needs to beat the PS4 ... if NX (as unified platform) can successfully outsell the XBox One while being a reasonably decent platform for third parties ... that is a reasonable goal.

Maybe MS kinda back pedals out of the business in that case. The goal with NX should be to push Microsoft down into third place while successfully unifying Nintendo's two platform lines. If it can do more than that then that's just icing on the cake. 

They need to be able to combine their portable userbase (which is still decent) with the major third party games on that said platform.