It'll do great. I see it roasting the 3DS where launch sales are concerned but then falling in line with the 3DS sales after year 1. Later iterations could allow it to excel. Like a cheaper standalone portable $199, a $99 console/TV box and a 9" high end tablet version $349.
As a Nintendo fan who wasn't so hot on the 3DS or Wii U, this really fixes my issues with both. The 3DS was too dated for my tastes, I'm not as crazy about handheld gaming as I was a decade ago, also the scope of its games generally didn't excite me. It's a great handheld but as a casual handheld gamer, I never felt I had to have it. I used my brothers to play Pokemon and left it at that. Meanwhile the Wii U didn't have enough games and the box was too expensive for me to pick up just to play Smash Bros and Mario Kart with my family.
Nintendo consolidating it's two markets into one is the selling point for me. We have a super powerful, modern handheld (hopefully with tablet functionality) with large scale games from big franchises. The same system also just happens to be a home console great for the couch multilayer games many look to Nintendo for, and more games than the Wii U could dream of including a HD Pokemon RPG game.
Part of its power is in appealing to fringe fans by offering all of Nintendo's selling points and in one fairly cheap package. If it launches with Zelda and several Wii U games that I missed (splatoon, Smash Bros, Mario Kart), it's a day 1 purchase for me.
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