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Personally I think a mobile console would be smart for Nintendo, at least it would be immediately different from a PS4/Neo or XBox One/Two.

If they could get good performance out of the chips maybe they could even have some PS4/XB1 ports playable in portable form at a reduced resolution/effects.

I've always felt this was probably the best Nintendo could do unless they come up with another miracle controller like the Wiimote, which I don't think is very likely.