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I think a couple of posters at NeoGaf might've cracked this thing ... what if the "controller" wings are using the Sharp Free Form LCD technology?

I mean we just assumed the screen would be in the middle and the controller sides would be plastic, but imagine an NX where the whole face of the screen is an LCD, the wings just have an analog stick + d-pad or buttons on them, but still surrounded by an LCD. 

Then when you detach the controllers and use them horizontally (NES/SNES pad style) the LCD underneath the d-pad could show B/A/X/Y buttons, but when it's connected back to the system that could go away, as the LCD can display whatever it wants underneath the (transparent?) buttons. 

This could also explain the mystery of what Nintendo is using the free form LCD display for since they did definitely sign a deal with Sharp to use that tech (not just a patent).