Everytime we're talking about Nintendo and the WiiU I always read some comments like "WiiU is one generation behind...", "Nintendo should have made the WiiU as powerfull as the Ps4...", "They're alienating 3rd party developers due to weak hardware..." etc.etc.  Of course, I don't agree. While I agree Nintendo has made some horrible mistakes this gen, I don't believe the problem is the (weak) hardware. A Nintendo console similar to the Ps4 or the Xbox One wouldn't work anyway. Going for a weak (and affordable) hardware is the best choice for them.

So, without any presumption to end this debate but just for fun, I've tried to imagine 2 completely opposite scenarios and guess in which case Nintendo could get the best results.

Scenario A.)

For next-gen Nintendo releases a NintedOUYA: an affordable but very underpowered console (even more underpowered compared to the WiiU) with no AAA 3rd party support, not marketed as competitor to the Ps4 or the XBone but as an addition or an alternative. The focus is on high-quality first party games, digital distribution and Freemium pricing strategy.

Scenario B.)

Nintendo releases a Ps4tendo: an high-end mainstream console marketed for hardcore gamers, the price pioint is on par with PS and XB and it has full 3rd party support and good online capabilities. The focus is offering the best AAA games and being the best console on the market for hardcore gamers.

Ok, fist consideration. Which scenario is more likely to happen? Of course scenario A. Nintendo is capable of making great games on modest hardware, they proved it countless times. On the other hand scenario B is much more difficult to achieve: other than developing a competitive hardware (which is the easiest thing), they would still have to convince 3rd parties there's enough potential market to make games for it (and that's very hard). But let's assume they can make it and Ps4tendo has literally the same 3rd party games as next-gen PS or XB.

Now, the second and most important question. Could I be interested to buy those consoles?

1.) If I am a Playstation fan. A Ps4tendo may sound more interesting on paper, but then would I spend 399$ and renounce to buy my PS console for it? I don't think so. I love Uncharted and God Of War and I would never miss them to play Mario. On the other hand, if Nintendo 1st party games are appealing to me enough I might conisder buying a 99$ NintendOUYA as a second console to play them, later.

2.) If I am an Xbox fan, see the above. With an NintendOUYA console I might be able to play Mario Kart and SSB while not missing Halo and my favourite games on Xbox.

3.) If I am a PC gamer. Again, see the above.

4.) If I am a Nintendo fan. Well in this case I'll prefer a Ps4tendo, I could get all Nintendo games plus all 3rd party games without buying another console. That said, since Nintendo games are the ones I like the most, if they release a NintendOUYA I would buy it anyway.

5.) If I'm a former multiplatform gamer, and I often buy multiple consoles since I don't want to miss any exlcusive. Well this case is more debatable, someone would prefer to have the most powerfull console as possible in any way, some other would be happy to buy an affordable NintendOUYA and save money for other consoles.

6.) Teh cazuals. Of course the Wii was fad, teh cazuals are not loyal, they've moved to smartphones etc.etc. But lets assume there's still some casual here and there who could be interested in buying the latest version of Just Dance or WiiFit (btw. Just Dance 2015 has recently sold 1.72m copies on the dead Wii console). Of course the only sensible option for them is to buy a NintendOUYA, no one would buy a Ps4tendo to play those games.

7.) Families - Kids/parents. Like it or not families and kids have always been (and always will be) a crucial market for Nintendo. Most parents don't care if their kids are playing a 4K resolution game made with Unreal Engine 4, they just want a good console for them to play without spending too much money on it. A NintendOUYA is undoubtedly the best choice for them.

So, to sum this up, this would be the result.

So, all things considered, a mainsteream hardcore console like a Ps4tendo, while being cool and (maybe) more accepted in some game communities, would still have a smaller potential market. On the other hand a NintendOUYA, while being a 2nd choice for many, could cater to a much wider market.

3rd consideration. So far I've assumed 3rd parties would support a Ps4tendo, but as I said above such console could only cater to Nintendo fans and a niche of multiplatofrm core players. This means the potentetial market for 3rd party games would also be small. Plus, since Nintendo fans are mostly interested in Nintendo games, 3rd party games would moslty be considered a second choice. You know where I'm getting at, even if they managed to get 3rd party support on day 1, that support would likely be withdrawn in the following years. In the end you would have a console that is supposed to compete with PS and XB that has no 3rd party support and it's way overpriced for the amount of entertainment it offers. Does that sound familiar? Oh yeah, that's a WiiU.

99$ hahaha no chance.  The gamepad controller cost like 80$ alone to make (might be slightly cheaper by now).

Knowing Nintendo the 100$ one is more likely.

However Nintendo have such bad hardware design decissions though... Im kinda scared thinking what nintendo would do with only 100$ to make a consol with.

If they would release an "Ouya" then things would go downhill fast (IMO). Either it should be on par with the next PS/XBOX or not all too far behind.

The GameCube kinda showed though that even at $99.99, Nintendo was easily being outsold by the PS2 and even the XBox.

So I'm not sure if simply having just a cheap system alone really is the be all, end all. The GameCube only got to 22 million, and it was $99.99 for like half of its life cycle.

My personal feeling -- don't make just one console. 

That's supposedly the whole point of the NX concept per speculation no? Multiple hardware lines that play the same ecosystem of software? Why not have multiple options then?

NX Tablet - Portable of course. 500 GFLOPS. 

NX Family Console - Classic Nintendo console, small form factor, 1 TFLOP processing power. New type of gimmicky controller (though not super expensive) Cheap $249.99 MSRP. 

NX Pro Console - Made more for the needs of the Western market. 3 TFLOP processor (this will be noticably better than a PS4). Larger console size. $349.99 MSRP. 

A game like Super Mario Galaxy 3 (hypothetical) could run at 960x540 with low effects and no anti-aliasing on the NX Tablet, but at 1920x1080 (full HD) resolution with higher end effects on the NX Pro Console. The NX Family Console (Famicom!) can run the game somewhere in between, 720p resolution with medium effects. 

Option 3)

Drop the consols... sell the Games on PC/PS4+XB1.

That solves both option A) and B).

If nintendo dont even want to try to compete against the ps4 or xb1 with their machines, they shouldnt.

This would be a better Option than "nintendOUYA" in my opinion.

The Wii market, the DS and 3DS market were hypotetical?

It's not just about the price, it's about how you market your consoles. The Gamecube was marketed as a Ps2/Xbox competitor its priced was dropped later, the fact it was 99$ made it only look a less valuable Ps2. Beside that I agree multiple form factors could be an interesting idea.

My point is not that Nintendo should make a console like OUYA, that's is taking to the extreme. What I mean is they shouldn't play by PS and XB rules; making an accessible and affordable console is more important for them than make a powerfull one and getting AAA support.

They could drop consoles and making games on other platforms, but they would give up hardware sales, plus that wouldn't cover teh cazualz and kids and families, so plan A would still be the better option.

GameCube was $99 competing against $149 consoles with better support and more multimedia features. This scenario would be a $99 Nintendo console vs $299-399 consoles so it's completely different.

"...making an accessible and affordable console is more important for them than make a powerfull one and getting AAA support."

It all comes back to the damn gamepad... that thing single handedly killed the Wii U.