I both agree and disagree with you: I think that the next iterations of both Nintendo home and handheld consoles are going to be designed to work incredibly closely with each other, and I wouldn't be suprised if the next handheld comes before the new console and works as intended with the Wii U.

However, I also think that ~2017 we're going to get the new home console from Ninty and it'll have considerable horsepower; representing a halfway between the PS4 and PS5 (same as the Wii U). Not so much for Nintendo's purposes, but to enable 3rd parties to play along.

I dont think the level of graphics we have currently are a good stopping point for all of eternity. Progress has to happen or the Industry will die.

I think they should keep the Wii U for 7-8 years like PS3/360. Keep it going a bit longer before the next system arrives, and try to recuperate their early losses, master HD development, and make their library as diverse as possible(also like the PS3/360).

The graphics/hardware push can't constantly be on the rev. It has to slow down and plateau at times(unless you love losing money) hence the 360 and PS3 going for so long. It would've been too damn expensive for either company to aim for the 5-6 year cycle. Also only AAA games/studios constantly demand more power but that segment has been shrinking. Nintendo and the others should open themselves up more to indie and mid-level games.

This, one can make the same power argument for any other electronic yet one thing stays constant whether you're talking about TVs, Laptops, Consoles, PCs, MP3 players, smartphones, cameras, whatever....they always get more powerful even if only to sell some more copies. No, ninty will not be fine with the Wii U's current power in 2020 because by then, consoles would be making french toast for us as well

That's great and all, but the last I heard Nintendo NEEDS to make A profit.

After ps360 launched, no console ever NEEDED more graphics.

No I strongly disagree. Most PS3/360 games are hardly playable for me. The reason is framerate and Imagequality. I just can not play some games on last gen consoles anymore. And tbh it always bothered me the Aliasing and Framerate. Back in 2006 I just didn`t knew that it can be better. Now I am simply unwilling to put up with bad image quality.  

nah i like home consoles don't want a hybrid if it sacrifices the power of the home console.

I think Nintendo's next home console should be powerful in order to attract 3rd parties. It's what's preventing them from dominating the industry. The rise of COD has pushed Nintendo to the rear in the views of the mass-market customer. GTA as well. Who knows what other great third party title may come along and be the "in" thing, and if Nintendo doesn't have it, their system won't sell. This is especially important as long as they are struggling to come up with an innovative and exciting new IP themselves. Personally, I do think they can "merge" handhelds and consoles in another way... by turning Wii U into their next true handheld in a tablet-like form (as suggested by Soundwave). Same or ported software for both, similar power, etc. This would salvage the Wii U development if it doesn't sell. But the next true home console should have lots of power to do whatever consumers are demanding at that time, which could be as long as 10+ years from now.

The only way a low-power system could work is if it offers something totally amazing on the controller or software side, and eureka moments are hard to come by.

Nintendo games certainly don't, they have a cartoony style that works and doesnt need loads of power, but most 3rd parties like to do more photo realistic stuff and thus need way more texture memory and shader effects. Power is what will stop 3rd parties making games for Wii U a year from now when the PS3 360 games are drying up, there will be no multiplatform games coming to Wii U. Nintendo need to convince 3rd parties to make exclusives for them, or to go multiplatform with games on weaker hardware like the Vita and 3DS.