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It's really all about the price tag and profit margin. If Nintendo can price it competitively and make a profit on hardware, it will make a killing with first-party software sales.

Look at all the crazy attention the NES Mini is getting. It's a $60 dollar system that plays only 30 games. If Nintendo sells NS for $199 and backs it up with the full might of its internal studios it will do very well.

Nintendo would be wise to remember that the console itself is just a vehicle for the games. People want to play Nintendo games. They just don't want to pay $350 for the privilege.