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I think everyone kinda suspected this was what the NX was. I expect the home set top box to be a standalone GPU connected via a thunderbolt like port.

Whatever the case this also confirms that the NX isn't even going to have XB1 level performance. But I think this is the best Nintendo can do, merge their home and mobile gaming divisions or risk losing both.

I don't believe this is all round a winning strategy tho, but that's just me and is left to be seen.