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The 3ds does just fine, as have all of Nintendo's other handhelds, without having the power of home consoles. 

If the hybrid rumor is true, the NX is not competing with PS4/Xbone. It's a handheld with a built in gameboy player, simply to satisfy people who like gaming on a big TV. It will probably get its own, unique 3rd party support titles in the same way 3ds gets them, while you can just use your PC or PS4 for anything else. And unlike 3ds, Nintendo's software will no longer be divided between two different platforms, which will strengthen Nintendo's output greatly.