With NX Nintendo are withdrawing from the home console business and they are putting at jeopardy their portable business with a design that is not very portable. A product that may not satisfy many people.
I think they are looking for the success of wii with a product that is cheap to make but fashionable and trendy and sells big numbers. It's a higher risk product but with larger rewards if it succeeds.
As much as I love Nintendo games I'm not really a fan of their hardware, its often under-powered and very overpriced.
Pachter predictions are based on normal business models but sometimes that's hard to apply to Nintendo.
I didn't expect the wii to succeed. I didn't think a re-packaged gamecube with a novelty controller in a stylish apple style case would sell for big money when its guts were seriously outdated and cheap and the games would be technically uncompetitive but Nintendo managed it big time. Nintendo likes using mature cheap as chips technology for huge profits.
It's a bit like Bose. I used to work in a hifi shop and you could get better sound for a tenth of the price, they were unreliable but looked great and the marketing was good and some people would buy them but the sensible money was spent elsewhere. We dreaded anyone wanting to hear a sound test of the Bose as we knew if they compared it to something else they would not buy and that money would walk out the door.
Sometimes a product can be greater than the sum of its parts in marketing and consumer appeal.
