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Nintendo needs to beat Microsoft, having three console manufacturers is just not sustainable, it forces the third manufacturer to have to rely on home-run miracles (like the Wiimote), and you can't realistically run your business assuming you can pull one of those out of your back pocket every few years without fail. It's asking too much of your R&D, it's hard enough to make great games, but creating hardware gimmicks that become huge break out crazes on top of that is asking the impossible. 

Playstation is Playstation, that's fine, Nintendo could still carve out a very profitable spot but they need ideally to be at no.2. Ideally actually for Nintendo is that NX beats the XB1 into submission so much so that MS just goes away and focuses on PC games again.

Europe needs to be a strong focus for Nintendo with the NX. If they can do well in Europe, that will likely bring XBox to its knees because its really only been able to gain traction in one market.