What do they want? A Hybrid system which can exist in its own market space alongside PS4/X1 and sustain itself through increased 1st party support and applications outside of games, or a powerful console competing directly against the 70-80m PS4/X1 combo?
Hybrid Handheld/Home console > Traditional high spec Console > Weak Controller Gimmick driven console.
Nintendo knows that a Hybrid system will scare many western devs away, I think they're more concerned with having a successful system than having western 3rd party on board. I say this because people are now reducing 3rd party support to success, which is very daft (See the Wii's first year or the 3DS in general). Prior to Neo/Scorpio announcement a powerful Nintendo box was far more compelling.
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