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Isn't this kinda the worst case scenario, that NX would be late to the market (2017) and would overlap into much more powerful next-gen Sony/MS hardware?

I guess the consensus 6 months ago was that NX would surely at least have 2-3 years more as a parity or even superior console, while Sony/MS sat idly by but it seems like VR pushed Sony into Neo, and MS was planning on Scorpio for a while. 

Scorpio seems more like a full-on XBox 2 with incredible 6 TFLOP performance (per Kotaku/Polygon leaks) but even PS4Neo at 4 TFLOP is a fairly impressive hardware leap forward. 

Was Nintendo banking hard on Sony/MS maintaining the status quo of the vanilla PS4/XB1 models for several more years? If the NX is somewhere between 1-2 TFLOPS (ranging from just below an XB1 to just over a PS4) ... it's pretty badly outdated from day 1 like the Wii U was. 

The console market is also getting oversaturated too, PS4 Neo, PS4, XBox Scorpio, XBox One, NX ... that's going to be 5 consoles in roughly 1 1/2 years. Are third parties seriously going to prioritize Nintendo in this equation? 

It doesn't look too great right now for the NX, even though I do think they will correct a lot of the mistakes of the Wii U, much like Sega with the Dreamcast, they are headed into a hardware tsunami I think.