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I think to understand the SCD you need to understand the Japanese market first and foremost.

In Japan there is higher speed internet (fiber optic) because it's such a small country and much easier for Nintendo to distribute servers country wide. Homes are also just naturally closer together.

So the SCD concept could work fairly easily there, especially if the portable is more common place. People who buy the SCD get bonuses like free Nintendo points and possibly free games if they buy the SCD and other people utilize the power of it.

That's right in the patent. That means for Nintendo this could be a cheap way to make sure buyers who only purchase the portable version of NX can still enjoy the higher end console graphics while at home by being able to "borrow" horsepower from nearby SCD units.

In the US/Europe, SCD would likely be more of just a standard add-on for those who want it and be their answer to the PS4K issue. Nothing wrong with that either.