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I think Nintendo needs to be a little more creative in their SKU offerings.

$200 portable + $300 console is playing it safe and not bringing anything new to the table, it'll just be upgrades on the Wii U and 3DS model they use now which is in large decline.

You need to take a hard look at the functionality that a home console should have in today's day and age ... not just "well it needs to be cheap". That's not good enough anymore.