This would make sense! it then means awe really just talking about unified architecure which is seems far more pedestrain then what I've seen many suggest.

Fusion isn't real

you dont have to buy both.
but nevertheless, im still skeptical about how would it be viable.

a handheld that could run home console games would be very expensive.

And multiplats, will they embrace the fusion idea?

This is not about the consoles themselves being an integral part of one another, it is more a software-based middle ground that allows for shared assets and development efforts on two platforms of different formats simultaneously, this is a step to ensure that they don't get bogged down with long development cycles on two fronts seeing as how they're practically supporting their home consoles all by themselves and 1st party software is still paramount to moving handhelds and keeping them vital.

It's a smart move by a company that has been cornered by market conditions and poor developer relations. The biggest challenge I see is making a handheld that has specs similar enough that it doesn't require vast amounts of scaling; this could mean that they will either make a powerful handheld and an "underpowered" home console, much the same as they do now or that they will or they will opt to do that scaling at a higher level. A handheld that keeps up with home consoles spec wise would likely be quite costly, both for the manufacturer and the consumers so I think that that option is out.

We're already seeing something similar now with the shared games between the 3DS and the Wii U, Smash is an example of such thinking so you could say that they have already started testing the waters with this strategy. Expect even more shared games between the two as the 8th gen moves on; this is really the best solution for them given the current circumstances.

It won't be a handheld + console in a single box.

It will be a portable platform that has Wii U-ish level graphics, that also has a seperate home console version that you can buy most likely.

That variant could (I'm speculating) have a slightly better chipset so that the games can run in 1080p, but it will be very cheap (sub-$200 IMO). 

The idea is combining Nintendo's games onto one platform allows for a much more steady flow of releases.

For example if you take Nintendo's release list last year it would be Pokemon X/Y, Mario 3D World, Pikmin 3, Luigi's Mansion 2, Animal Crossing, Wonderful 101, etc. A very consistent flow of games.

And for Nintendo it would also combine their userbase together so that all their games can enjoy access to the widest possible userbase ... not like today where Nintendo is going to sell roughly 95 million 3DS + Wii U, but the games like Bayonetta 2, Mario Kart 8, Pikmin 3 don't benefit from the overall Nintendo audience because they're stuck on the Wii U side and that's 20 million users at best.

Now imagine those same games could sell to 80 million households instead? Think iPhone-iPad ... most apps work on both devices, some iPad apps have better resolution because the iPad has a better resolution screen/better chipset (though very similar) but that's about it. 

OMG! just like Next Gen!! HYPE

OP: I really thought it could be a handheld (that works like a gamepad) and a home console in a single box named like a single system, it would be pricey but people would buy it anyway, just put games and watch the million sellers appear

Fusion is actually far cheaper for the consumer to get access to all Nintendo games than the model Nintendo proposes today.

Today if you want to play say Pokemon X/Y and Mario Kart 8 ... you have to pay Nintendo $170-$200 for a 3DS, then another $300 for a Wii U ($470-$500 total just on hardware).

With the Fusion setup if you want to play Mario Kart 9, you can just buy the handheld variant for $200 or lets say you like the Pokemon games but have no interest in a game handheld ... you can play the next-gen Pokemon at home on your TV in 1080P and not have to buy a handheld.

It's actually far more consumer friendly that the setup Nintendo has right now, where they are honestly asking for a ton of money to access their entire game lineup.

Sounds like a jack of all trades but master of none. We'll see soon enough either way.

The console portion handles the heavy work and transmits the game to the portable portion which can be taken anywhere. That's what it sounds like to me: latency will be the challenge to tackle in this regard.