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AlfredoTurkey said:
Yes, they could. But the people in charge don't know how to do it. People like to point to N64 and Gamecube as examples of how they can't do it, but those two consoles had something "different" about them that hindered their success. The N64 used carts and had a funky controller and the Gamecube used mini-DVD disc and also had a funky controller that excluded two full sized analog sticks. It also didn't play DVD movies which was the standard at the time.

Imagine if Nintendo had released the PS4 as it currently is. Same design, same power, same everything, only it also had Nintendo exclusives. What the hell would Sony and Microsoft do to combat something like that? They'd get annihilated because you'd have the best third party versions AND Nintendo games in one box It would be the perfect console.

Branding. At least in Europe, I can guarantee you that in most countries it would fall flat on its face, even if it had the same specs, same price, and all the same 3rd party games as the PS4.

Most people in PAL regions don't even know what a console is. They go in a store to buy Playstation. 

Retail support is also heavily biased towards Sony. Entire rooms are reserved for PS4 and even the Vita, yet just a few shelves are for the Xbone and a shelf for Nintendo in its entirety.

Case in point, Nintendo should stick with the hybrid idea, and execute it to perfection with a constant stream of games, whilst having some form of 3rd party support.