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Making PS4/XB1 style system at this stage would have bigger chance for a flop.

All that would happen if Nintendo released say a 2.5 TFLOP system would be that people would say "look how much better XYZ third party game is on Scorpio or Neo!" and it would just be Nintendo hardcore buying that. No one wants three consoles that do the exact same thing, it's never, ever once worked in this industry.

At least this is something different and in a wheelhouse that Nintendo is successful at (portable).