Nintendo's in it to turn a profit, not to corner the market.

So consoles that make money are failed consoles. Stop trolling Dude :D

I dont really get how the fusion thing would work.
Is it like when you buy a game, it will have a game disc and a card thing (like what the ds had, dont what's it called)?

Im still waiting for proof that any of their consoles have failed.

I hope you are not counting the WiiU, cause this generation is still on its way, we cant determine anything about its success or failure until 

the console is out of production.

Even the gamecube made a profit. Nintendo does not need to sell a lot of consoles to make a profit. Contrary to Sony and Microsoft who can sell a ton of consoles and still lose money...

The GameCube was released in a pretty different time though.

Development costs were a lot smaller and the hardware was cheaper. Microsoft being a newcomer was also less entrenched in the market. Japanese games still sold pretty well in the West and there was no iOS/Android to have to worry about either. 

GBA was selling at a higher rate per year than the 3DS is and the early 2000s were the peak of the Pokemon licensing craze (major movie releases, tons of merchandise, etc.) which helped buoy profits. Even so the GameCube fell horribly short of Nintendo's target for the system which was 50 million units. 

What is the next console supposed to be anyway? Just something slightly "better" than a PS4 released 4 years late starting with a library of 5-7 games versus like 400+ (by that time) for the PS4/X1? There's only going to be a market of about 14-15 mill Nintendo die hards for such a platform and third parties won't touch it, the Wii U is basically the official divorce between Nintendo and third parties. You can't make money off a platform with such a low userbase and such high development costs. 

If it's a "Fusion" device than most likely it's just the handheld chip, maybe "super powered" a bit and thrown into a Apple TV/Vita TV style casing, but that's really just a way to play portable games on your TV. But that should be gravy profit for Nintendo, just like the iPod Touch is basically just another version of the iPhone, it doesn't sell a ton for Apple, but it's a bonus and fills a market need. 

It would be more like the iPad/iPhone/iPod touch I think. You have a unified account and you buy an app/game and it's available on whatever device you want. If you don't want a phone for example you can buy an iPod touch and have access to the same apps. 

I can see something like you can buy say Mario Galaxy 3 for $39.99 for the portable version, but if you have the home version as well, paying another $10 unlocks the "home HD" version too (1080p at home, 540p or 720p on the go). When you're on the road you play on your handheld, when you get home, your handheld syncs your game saves to your home console if you wish to continue playing on your TV. Physical games will be 3DS style carts (no discs). 

Think of it more like the Vita/Vita TV, except Nintendo can actually still sell handhelds and Wii U-range graphics or better. Vita games will look kinda crappy on a HD TV since the native res is sub-HD, but the mobile chips of today are considerably more powerful. 

@OP:
Profit. They do it even with low selling consoles, as they always keep HW dev & production costs under control so that at worst including SW, they get a platform overall lifetime profit (their only true failure about this was the Virtual Boy). Even on them their core 1st party titles sell a lot and they get all the profit from them, besides receiving royalties from 3rd parties instead of having to pay them if they themselves went 3rd party too.

NES sold well
SNES sold well
N64 was profitable
GCN was profitable
Wii sold well
Yeah lets just stop making hardware.

Now you're getting it!