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If the case is though that they're going have a home console with little/no third party support like the Wii U does, then I think long term they may as well just cut a deal with Sony.

- Agree to put specific "big" titles on Playstation home consoles. Sony agrees to waives licensing fees so Nintendo gets full profit. Nintendo can make their own Playstation controller on which they keep the profit.

- Sony in return agrees to support Nintendo portable consoles with software titles and encouraging third party partners.

Because what then really is the point of a Nintendo console if its just going to play Nintendo games? Nintendo receives no royalty fee revenue from developers so the console is basically just there for Nintendo games, might as well then just allow the games to be distributed for a wide audience so long as Sony doesn't charge them licensing fees.

There's no point in having a console that's only going to sell 10-15 million units.