I don't think Nintendo is necessarily going after the console gamer crowd. I think they're more interested in mobile gamers, who have moved over to tablets and smartphones. That's where kids are learning to play their first games these days (sadly). That's where the casual market is. And that's where they can realistically innovate and draw attention.
I think the NX is more likely to be a device that blurs the lines between the tablet market and consoles. Something mobile gamers can pick up and play their games on, but also have access to quality AAA games. In that sense, the NX doesn't need to beat out the PS4 or Xbox One; it just needs to be clearly a better entertainment tablet than others on the market.
And I think that will be easy for Nintendo to do. Easier than releasing a console to compete with Sony and Microsoft anyways. For one, Nintendo's handhelds have historically sold better them their consoles by a wide margin (we're on VGChartz, look it up). There's clearly a lot of people who will purchase a portable Nintendo device right away. Second, the tablet market is stagnating. No one's doing anything interesting or new. It's just slightly better versions of the same stuff that came out last year. Nintendo swooping in offering a tablet that can do the same stuff but also play high quality Nintendo games will be an easy sell for any families buying a family tablet (which is a big market). If it can play console quality games like Breath of the Wild, too, that will be an easy win for a lot of core gamers and definitely Nintendo fans. And if it can run a video signal to your TV and let you hook up more controllers for multi-player, all the better.
If these suspicions are correct, Nintendo should be worrying more about creating a competent tablet than dealing with Sony or Microsoft. But there's a lot of pieces to this puzzle still missing, so we'll see whenever the thing is revealed...







