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Using x86 if true is fine in the sense that yes Nintendo needs to be pragmatic about developer support, they can't be so stubborn and stupid to think they can alone support a platform by themselves that is going to sell to anyone other than a base of about 15 million Nintendo fanatics and no one else.

That said, great now Nintendo just needs a time machine to travel back to 2012/13 and release this system instead of the Wii U. That's the bigger problem, this basically just sounds like a Nintendo PS4, but far too late, similar to the Wii U which was way too late to seriously compete with the PS3/360.