It seems every month we hear about another company entering the microconsole market, even the big hitters in the smartphone/tablet market have been entering like Amazon with the Fire TV and Google with the Nexus Player. The market seems to be crowded but none have truly been able to pull ahead and see massive sales. Can Nintendo be the one to make microconsoles a big deal?

These devices have the price point down, $99-149, but I think lack of defining software is a huge reason why these devices haven't been seen as legitimate gaming devices. They don't offer big games suited for the TV like Playstation or Xbox do, instead just having games found on their phone/tablet counterparts. I think these type of devices need to feature software that is a nice middle ground between $60 AAA console titles and $1 mobile games. That is where Nintendo comes in.

Nintendo can offer a wide range of $10-40 software. Currently they have eShop only titles like Dillon's Rolling Western and Pushmo World at $9.99 and apparently a $60 retail game gives them $34 back after factoring in manufacturing/packaging/shipping/retailer cut, so they can sell games like Super Smash Bros or Legend of Zelda for $39.99 by going full digital along with games that fall between those two spectrums selling for $19.99-29.99.

In terms of hardware, like they have already stated, will "absorb" the Wii U architecture as will the next handheld in order to maximize software output. Perhaps they won't be completely identical but the microconsole and next handheld will feature similar hardware and have cross-buy/cross-save on many titles. I don't see it being an extremely powerful device, basically a souped-up Wii U, similar to the transition from GC to Wii. A more modern CPU/GPU along with 4gb RAM so it will have slightly better visuals than Wii U but at 1080p for all 1st/2nd party titles.

Some microconsoles have 2 sku, one with a TV style remote for $99.99 or one with a standard game controller for $149.99, I think this device could do something similar. A controller similar to a Wii Remote will come bundled with one sku and a controller similar to the Pro Controller in the other sku, each selling around $149.99. Also the next handheld can be linked to the microconsole and act as a Gamepad for it, perhaps even having a bundle that comes with microconsole+handheld.

Some other ways to make sure the device has adequate software support is to continue building strong relations with indie developers, make a vastly improved Virtual Console that has games all the way from NES-Wii, perhaps even Wii U titles if possible, make it extremely easy to port games to and from the handheld or even going a step further and making all games compatible on both devices, just scaled up or down, ensuring that 3rd parties that support Nintendo handhelds also support the console.

Also give it a decent amount of streaming services like Netflix/Hulu/Crunchyroll/HBO Go/etc.

Could a $149.99 digital-only Nintendo microconsole with $0.99-39.99 software and strong support sell well?

No thanks. The Vita TV and Ouya has proven that Micro-consoles that isn't Apple or Google sell laughably bad. They should just make a standard one

Why should be digital only?

its should be a megaconsole

Do u really think Vita TV and Ouya are comparable to a Nintendo device sold at a low cost with strong software output?

Ouya is a device which had a good concept but overall the execution was poor and Vita TV is just a home version of an already failed handheld.

They can sell software for a lower price while still making more money per unit sold.

No. The microconsole concept isn't very popular in third world countries. People would rather game on a tablet.

I would be fine with it honestly. Have the same games on the console & HH with the console being a $150 micro system.

I believe the next console will feature an improved Gamepad with haptic tech though

Microconsoles generally don't do well.

Nintendo is the last company I see that would go that route.

Well, think of the Gamecube... That thing costed $100 and had quite a great library of Nintendo games but that sold poorly which leads me to believe that Nintendo needs something more than just their games and a cheap console in order to sell very high. They either need something like the wii where the concept + marketing + execution came together so well that it sold like cray cray or a standard console where they need both their own games and a strong third party lineup so no, I don't think a Microconsole is the right way to go cause it wont do either