On the specs side, the ideal sweet spot would be about half the level of Neo/Two. That would make it significantly cheaper to produce, but not weak enough to hurt anything - especially with Vanilla 4/One presumably on the market as long as the 4K systems are.
Those saying that Nintendo can't or shouldn't compete in the console arms race don't know what they're talking about. There was a time this was true, when MS and Sony jumped the gun to HD and sold money-losing consoles. Following suit would have been suicide for Nintendo. But today's 4 and One are far from bleeding edge tech and don't drain funds from their producers, especially with annual fees. Nintendo could easily make a competitive machine that turns a profit, especially if they leveraged their massive back catalogue to produce a desirable subscription service for old games. Nintendoflix.
The great success of Which was that it was innovative, cheap and had mass market appeal. Its great failing was that it lacked the power to play major third party titles, causing gamers to upgrade to the 360 or 4 after HD TV's became common.
Nintendo has a potential home run with the new Zelda title. It has the attention of both core gamers and mainstream consumers. For NX to be a success it will need to build on that and offer some new and interesting titles and features, but also enough processing power that third parties can bring their titles over without issue. Should NX look like an early success, 3rd parties will have interest, and Nintendo needs them.
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