Nintendo can still have a powerful HW and still have some controller magic trick up their sleeve, without a hefty price tag on both consoles.
It will most likely depend on component parts and their software output.
Even if the Fusion strategy is, in terms of HW, a money losing one, the increased profits in SW sales, less money used in activities like marketing, NEW Amiibo figures (a new line of Amiibo!), might offset the losses at first and even make a profit.
But in the end, what good would a powerful Wii 3 do?
As we have seen over and over again, it was not powerful HW that made Sony a success. Even PS4, who is winning, is doing so because the only competition gamers care about completely failed in there eyes and Sony excelled.
PS4 isn't that much powerfull than the XB1 to be winning by such a wide margin.
More than having a powerful HW, Nintendo needs, unlike what it did with the Wii U, it needs games, right from the start, that showcase what the systems are all about.
Wii U completely failed at that: it's biggest showcases were a new 2D Mario game that looked like its Wii brother in slightly better graphics and NintendoLand. That was it.
Also, you need to show your big guns, just like Nintendo did in 2006. That was a lesson that somehow Nintendo forgot or just wasn't ready to show anything else because it didn't have anything else.
And this why Fusion is so important and vital to Nintendo.
Nintendo is no longer in a position where it can choose what type of strategy is best for them.
They are out of options!
Wii U has been nothing but a mess in terms of game development: lack of games in the first half for 3 years.
They no longer can support a home console. 3rd parties are no longer there ofr them.
The handheld market is thir best because it's old tech and japanese 3rd parties have their back. But at the same time, its market is being eaten by mobile gaming.
Going into next gen, can they really afford to keep supporting their consoles all by themselves, especially their home console?
It's no longer of choosing between visions of what path they should follow, it's a matter of how can survive in
the market.
Things have reached a point that not even great games of their best franchises can breathe a new life into their home console market. Why would anything change next gen if Nintendo keeps the same strategy?