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Soundwave said:

The problem is outside of a small group of Nintendo loyalists like myself and you, probably not a lot of people would buy such a system. 

It'd be the GameCube all over again, but worse because Sony and MS both have 3+ year head starts, and today Sony/MS also lock people into to their online ecosystems, which is more of a factor than it was in 2001 (ie: even if you prefer say an XBox, you buy the PS4 because your best friend already has it and you want to be able to play COD, NBA2K, Destiny, GTA, etc. online with them). 

Nintendo needed to release the system you've described 2-3 years ago, by 2017 it's way too late. 

If they want to release a "serious" console now, it has to be Scorpio level in spec at minimum, I would say probably even beyond that to really get any mainstream attention. 

2.5 TFLOP isn't going to impress anyone when the PS4 Pro is already 4 TFLOPS and Scorpio is at 6 TFLOP and while the regular PS4 has thousands of games already. The only system it would maybe compare favorably against would maybe be the vanilla XBox One S. 

That is why it has to have a lower price point. $199 and people would love the thing. 2.5 isn't much compared to Scorpio, but it is ahead of PS4 and Xbox One. Then all Nintendo needs to do is ride out the generation with their unified teams, sell on mobile, make some theme park rides and make some more Nintendo merch, and they will have carved out a real solid niche for themselves that doesn't solely rely on video games, but still features it prominently. You can't tell me that a Pokemon with 2.5 TFs of power wouldn't look like the cartoon but in real time. That alone would move units. People will buy a console and Pokemon for $249, but they won't spend $299 for a 720p tablet, no matter who makes it.