This.

Iwata specifically mentioned two future systems - a handheld and a home console. Indeed, they'll share the same OS and will apparently get overlapping games released on them, but nowhere did he say they're scrapping the home console + handheld strategy. The contrary, in fact.

I wonder what kind of stuff Sony and Microsoft are thinking of for their next consoles.

Edit: Also, we should all except we have no clue what he's talking about.

If nintendo makes their next console a HH/home console hybrid it will be one of the single worst decisions nintendo has ever made. Putting all their eggs in one basket is just not good business sense.

What happens if they have another wiiU like situation on their hands and people end up rejecting the hardware and they don't have anything to fall back on (ie no handheld business to bring in revenue). Not to mention handheld games and home console games offer different types of experiences and gameplay. Has anyone given any thought to a situation like that? It really puzzles me that anyone will see this as a good idea.

If nintendo does this then it will truly be doomed, but to be honest with the current trend of thinking at nintendo I wouldn't be surprised if they do.

Actually you guys should just read the quote. He said no more seperated systems, the hardware becomes largely immaterial. 

He said there could be even 3 or 4 different hardware depending on what suits the consumer ... but the software would be the same, like iOS and Android.

My guess is something like this -- Nintendo tablet, smaller Nintendo handheld, and Nintendo home dock ... all with basically the same tech (based on ARM/mobile GPU) ... the consumer is free to choose which hardware they want but the games are pretty much the same aside from maybe resolution differences. 

I think really you know deep down where Nintendo is going with this. 

The "super console" idea is always going to be wishful fantasy from Nintendo fans, but Nintendo turned from that path a long time ago. 

Scalability won't work if the gap between hardware is too large and it renders the whole R&D savings thing moot. 

Also a Wii U level handheld/tablet platform will bail Nintendo out of a big problem too -- they likely have already sunk a lot of $$$ into development of Wii U titles that are not going to yield them big profit. 

Being able to quickly port those games over to a new shiny handheld platform (ahem Zelda U) solves that problem. 

The next Nintendo gaming platform is going to be all about bringing all the Nintendo games people like from the NES days right on up to Mario Kart 8 and making that playable in a form factor (tablet like, portable) that fits a person's lifestlye today ... play where you want, when you want, from "low end" simple games like those on tablets/Virtual Console to "real" modern versions of Mario and perhaps even Calladooty and what not. 

Love tablet games? Great. But can your tablet transform into a "real" home console for Thanksgiving with the family? 

That's gonna be their sales hook. 

I think they are putting on a brave face but they know internally the Wii U is a dud and home consoles in general are a dead end for them. 

They can't compete against Sony/MS, as a matter of fact I wouldn't be shocked if Yamauchi basically made Iwata swear to never go down that path. I think it's telling that they would rather devote an entire division to seniors/fat soccer moms that try to double down again against MS/Sony. They just don't have that fight in them (and perhaps for the best as it's likely a foolish fight for them to get into). 

The technology is finally here where mobile chips can provide Nintendo with a level of tech that might not make 'I need a 4K consolez for grapjix!' happy, but can finally allow them to make even the higher end Zelda/Metroid games at full scale for their own needs in any form factor. 

Nintendo is never going to make a $100 million dollar Zelda or Metroid game, partly because it's way too risky, anything that gets them Wii U level visuals and perhaps can go even beyond to 1080P is good enough for Nintendo IMO. They'll be very happy with that. 

They need to open up themselves so that 80 million+ audience that's still willing to buy a Nintendo handheld can buy those higher end Nintendo titles (ie: Zelda U, DKC: TF, X, etc.) and they're not stuck on a rotting console platform that only appeals to about 20 million Nintendo fanatics and no one else.

C'mon. Nintendo is never going to spend big dollars on a freaking Metroid game. It's not even a B-tier Nintendo franchise anymore ... the two Metroid games on Wii could barely sell 2 million WW combined on a userbase of 100 million. 

Nintendo fans need to tune into reality a little bit and the truth is this -- Zelda and Metroid (gasp!) in a marketing sense are not a big deal, neither are one of Nintendo's top 5 selling franchises. 

Link looks great on the Wii U chip anyway. Good enough I'd bet for Nintendo's tastes. Nintendo's not going to sink huge $$$$ into a console platform just so Samus' armor can look a tad bit shinier. We are reaching the point of diminishing returns with graphics, especially for Nintendo IP as they tend to favor more cartoony art styles for 90% of their franchises. 

Even the Nintendo fan base seem to have given up on the WiiU :P

sounds like Nintendo already give up WiiU... 

Basically if you want to see Nintendo's next console, it'll basically be this IMO ... something barely bigger than a deck of playing cards:

Just far better executed than Sony's attempt and using 2015-era mobile chips it'll be able to appromixate Wii U engines. The same "chipset" more or less will also be in a corresponding Nintendo portable. You can choose if you want one, the other, or both. Just like some people have an iPhone, some people have an iPad, some people have both ... but Apple sells them all the same apps.