And rightly so, it's an awful idea that will lose them a ton of money and isn't gauranteed to benefit them either.

The earliest that Nintendo could come out with a powerful new console is holiday 2016. By that time there will be something like 50 million PS4's sold and 30 million XB1's both costing something like $299 and having hundreds of games that appeal to mainstream gamers with large established online communities. Nintendo wouldn't simply be able to make a PS4/XB1 level system, they would need a PS5/XB4 level system or else they are basically releasing Wii U2. This type of device would likely be $400+. Will the 80 million or so people who just bought a PS4/XB1 within the last 3 years be ready to buy a new $400 console already? Probably not. Will people looking for a new console in 2017 and beyond choose the most expensive console, with the smallest number of games and a small online community? Probably not. So who will buy this console? Probably the same people who bought a Wii U for its exclusive titles.

They had a window to release a high end console in 2011-12 that could've taken advantage of Sony/MS' long PS3/360 lifecycles ... but Nintendo as per usual missed the bus and decided to bet everything (again) on a gimmick controller. 

At this point now, they're so weakened in the console space that they really don't have many options to begin with. Basically collapsing their console division into their portable division so they can at least provide an adequete flow of games is really their only feasible option now I think. 

Ideally, part of me wants a fusion of console and handheld, the obvious fusion of such a desire is with the controller itself will be a next gen Handheld and used in something of a Gamepad substitute for Wii U games that use it. But I can see other potential ideas such as having some part of the controller detach and be portable while still retaining save data such as profiles but personally I think the most important aspect would be to replicate Streetpass like mechanism.

I don't play my 3DS in public, but I carry it around from time to time because I do like getting Streetpass hits. Imagine that for a console, some would argue having online lobbies and such would be just as good but I view the surprise of random Street pass strangers to be more entertaining and something that could promote live social interactivity that Nintendo likes to do anyway these days.

What I want to see is

- USB ports that can FUCKING support running a external portable HDD without the need for a Y cable. I Prefer the external hdd idea over internal as plug and play make it easier to have multiple drives with installed games. Leave the internal memory for system only features.

- The ability to backup single bits (they kind of let you back up bits now but still not perfect) i.e. patches and addon installers and games. That way I can uninstall and reinstall whenever i want even when the updates have gone of the server.

- Line up with PC architecture so its easy to port for.

- Trophies/Achievements system so people stop whinging about it on this forum every week.

Right. Nintendo only gets third party support anymore when they sell so well that they can't possibly be ignored for fear of pissing off investors. Sell well, and they'll come back. Otherwise it's a huge, expensive uphill battle with very long odds.

Also with unified devices they are more free to experiment and create new ip. No longer would they need to make two entries of all their popular franchises. For example, instead of making Mario Kart for the handheld and 2 years later making Mario Kart for the console, they could just release one that's playable on either device then make a different racing game like F-Zero or a new racing series with a different style while continuing to support Mario Kart with DLC. It can help them diversify their internal software.

Your opinion over this "fusion" idea is already clear, just like other's opinion that it's not a good idea, no need to keep repeating it. Nintendo didn't miss a thing, they released a console with hardware corresponding to it's time. The problem was third parties not knowing how to make their own job.

My hard drive has it's own on / off switch and does not require a Y cable.  I thought they suggested an enclosure with it's own power source ...

yes but i shouldn't need an external power source. My laptop can power up multiple portable 2.5nch externals without dramas. They just need better usb ports next gen that output more amps.

Great post! (by the way I feel that vgchartz would need a 'like' button for posts like this) I agree with almost all you points, but I fear that nintendo don't have the ability to make such advanced hardware anymore (since the dear gamecube).

Also what you are describing mostly is a PS4 hardware + PSN / XBL features. I would love if Nintendo would become third party and develop software for PS4: decent hardware, unifed account, friends, trophies, share, etc. all of this on Nintendo great games! Wow! A dream team!

I could bear the cheap and weak hardware (because of useless Backward compatibility) but I really can't bear no real unified account and no trophies system at this day and age, that's unacceptable for a modern device! That's the real reason I don't buy stuff on the 3DS store.

And yes, please ditch the gamepad for the next console and build on the pro-controller familiy which is very good (even if still incomplete, no analog trigger etc.), but ideally, it would be really best if they simply use a DS4, we'll get the DS4 features like touch pad, the built in audio + motion stuff which could work on many Nintendo games, current and future.