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Technology moves on so quickly I could see the nx being almost as described,

Haven't Nintendo announced they will not be having optical disk drives? That removes almost all requirement for a hard drive, besides the OS everything else could be cart based, saves would be on the game cartridge, the game would need no pre installation which is done to reduce load times.. In fact, a game could run better even with less than ps4 / XBO specs for that reason alone.

Also no need for a large hard drive, coupled with modern micro components will reduce power usage, increasing battery life and reducing heat.

The only place you could poke holes in this rumour is really on the subject of multi player on the same console.. Will you be able to use wii remotes again? How about the wii U controller?

Either of these things would significantly reduce the real cost of the system even if it breaks the £300 mark.

People saying the OP has to be wrong because smart devices can't be that powerful are grasping at straws, the technology is already there. Games companies are already complaining about the onerous cost of modern graphics, pitching for XBO levels is probably smart.