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Soundwave said:

1) Handheld games are getting more expensive to make, crossing the threshold from PS2 level graphics to close to/better than PS3 graphics with the 3DS successor is likely a big turning point for Nintendo, there's no way they can continue to support progressively more advanced portables while doing the same with consoles forever. 

2) It also begs the question if the Nintendo portable can basically run very good looking versions of any Nintendo IP, even the extremely big scope titles like Zelda 3D and Xenoblade ... then what really is the draw for the console ... that it has good-er-er graphics? This is also a problem, most consumers will buy the portable and say that's "good enough" to get their Nintendo fix. 

The days where you *needed* a Nintendo console to play "real" Nintendo games like Mario 64 and GoldenEye and Zelda: Oot, because you could only play basic rudimentary 2D games on the Nintendo portable are long over. 

3) The reason for wanting to unify is fairly obvious for other reasons too ... 4/5 people buying Nintendo hardware don't buy Nintendo consoles in 2 of the last 3 generations. That means the vast majority of their userbase never plays the games they put the highest budget/most dev time (mostly) into. This generation Nintendo will sell 85 million pieces of hardware, but 70+ million of those are not a Wii U. 

That is an insanely stupid way to run your business for one. Imagine if we're running say a fast food business like McDonalds and the Big Mac (the "flagship sandwhich) is only available at 1 out of every 4 restaurants. 

1) It's always been like this. Nintendo was wise enough to keep all their handhelds lo-tech, and they sell regardless. 

2) Why? Why should there be no market for epic cutting-edge AAA games when PS4 and PC are hugely successful with exactly these? How are an Ocarina port and a Xenoblade port proof that you don't need a powerful home console for new big Nintendo games? *I* know I want the next Zelda, and I want it to be as epic and beautiful as it can be.

3) You're looking at it backwards. Of course it makes no sense right now - because Wii U already flopped! But the reason is not that there's no demand for AAA games. It's because they messed up the time schedule to build momentum, causing a devil's circle of no software -> no install base -> no new developments -> repeat.