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Nuvendil said:

Well Nintendo has also sold almost 60mil 3DSs so there's that crowd.  So this machine could very well see success in the tens of millions, 50+ mil with ease and potentially far more.  But the question is whether they would GAIN anyone or just merge their secure handheld and console audiences while sacrificing any double-dipping sales.

I think nintendo still lives in a bubble. I fear some of its fans do too.....

I really hope this strategy works out for them but i just dont know. You can buy an amazon fire tablet for as little as $50. I have friends with kids that have found it more effective getting their kids a tablet which ipems them up to netflix, tons of free android games, YouTube and they can even Skype with said kids through it.  for a parent, their is way more value in a $50 tablet than there is in a $200-$250 console for their kids. And that is something Nintendo is going to have to overcome. 

Forget the core crowd, I doubt Nintendo still believes they have much of that left. 

This is one of those things that sound really good on paper but in reality I fear not so much. But we will see I guess.