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This sounds very plausable.

It also goes with other rumors that were concerned about the price.

It's probably gonna be pricy, and that is not a good thing. This could work, but would have to be priced on the range of a handheld console. If its not, handheld customers won't get it and thats where the biggest chunk of Nintendo's market is.

I still think it will fail despite all. Because i don't see Nintendo beeing agressive with its pricing. But... if it does get positioned as a handheld console, that is pretty much a monopoly for them. The Vita hardly twitches with life (though it lingers) and the other home consoles wouldn't necessarely be competitiors.