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They would abandon console market for a while and focus only on handheld market. The opposite of what Sony did after Vita flopped

However they know handheld market is shrinking as time pass by, so I guess they would still making their last console effort around 2024-2025, focusing in the Sony and MS strategy: Raw power and 3rd party games

If nothing work out and their new home console sell as bad as Wii U they would go just a 3rd party software developer. There isn't another way around