The recent AMD RX 3XX series is just a rebrand of older graphic cards with some of them having more Ram, including cards from the AMD RX 2XX series.

I think the key in the hybrid-console-handheld-business is scaling your games for the different machines. PC Games are very good with scaling their requirements for a wide range of possible hardware-configurations, there are even auto-configuration-tools like Geforce Experience from nVidia. Steam-Machines are going to do the same and this Smach Zero will play most games on low settings.

You can see similar things for example on iOS where some games can run on hardware that is four years old, but the same games are shining on the last iPad. This good perfomance on a so transforming platform (doubling graphics-perfomance every year) is simpler to implement when there is a litte number of hardware configurations that a programmer can detect and test in a reasonable period of time time like one new iPhone/iPad every fall.

This could reduce costs of developement for games that are released for this one platform on multiple machines, but this fact doesn't imply that the home console has to sacrifice most of the perfomance because of the handheld. Create a good handheld with a low-power SoC from AMD, put 2 GB of Ram in the device and a 720p screen. Runs all new games from Nintendo, but with lower graphics-quality for 199.99$ launch-price.

The home console can have a chip with higher perfomance, a higher resolution (1080p) and higher graphics-quality with 4 or 8 GB of faster Ram for 299.99$. The difference between games on those two devices would be closer than what we have seen with Smash Bros. on 3DS and WiiU.

Factory-Costs would drop soon with the use of standard-parts and it would be possible to maintain attractive hardware-prices with making some money on every sold machine. When 2018 or 2019 arrives and 4K is the new gold-standard for TV's like FullHD is today, new games could implement a third graphics-tier, a new home console with 4K launches and a new handheld with 1080p-support. No game-drought, because the whole library of games would be compatible, older games without 4K-tier-graphics just would be upscaled.

This is the only way hybrid should work.

I don't underestimating anything, my point is that lower resolution display means lower price of device itself, because resolution of display effects on power of CPU, RAM, GPU and battery. And in era of cheap smartphones that can play almost any game, Nintendo need to offer lower price point for their handheld, $150-199.

That said, I would love 720p display, it much stronger standard than 540p, it allow Nintendo to easy port Wii U games or some other benefits...but I dont think Nintendo will go for 720p display.

Of Course, we dont know anything for sure, this just is assuming that Nintendo will release again separate handheld and home consoles, but maybe we will get some kind of hybrid device with stronger specs.

I think going too cheap is fairly dangerous. You will end up with a product that looks cheap and outdated, and that doesn't sell in today's market anymore. Nintendo needs a more modern product that has functionality that people expect from a mobile device today (even kids are used to tablets, you can't sucker them anymore with a cheap device that has a shitty display for example). 

That's part of the reason the 2DS has not really taken off and why when given a choice between the more expensive 3DS XL and the cheaper regular 3DS and 2DS, the XL is the better selling model. Allowing for easy porting of Android apps would be smart in this case, the device could have a lot of functionality beyond just gaming right from day 1. 

People don't want a cheap product these days. 

Keep it under $250, is still reasonable in pricing, but when you're getting into like sub-$199 ... I think you're getting into a danger zone of having no budget to really make a product that anyone will be impressed by. 

More dangerous is releasing expensive dedicated handheld device in era of smartphones.

3DS is currently $150-200, next handheld with that price point could easily have bigger and better screen with much higher resolution and much stronger hardver, 5-6" display, ARM Cortex A-53 quad core, 2GB Ram, and suitable GPU.

Add to that very strong integration with Nintendo home console and probably playable home console games, you will have pretty popular dedicated handheld device with better third party support than 3DS had.

$150 is a bit too low IMO. 

The 2DS/cheaper 3DS have shown people really don't want to skimp on features just for a low price point, otherwise they should be outselling the 3DS XL, but people who do choose to buy a 3DS choose by majority to pick the most expensive model. 

You can't have "strong integration" with the console if you have such a weak portable, to have somewhat seamless play between the two home/portable you're going to need some decent grunt under the hood too. 

I'd say start at a launch price of $219-$229. Still cheap, still reasoable, only a stone's throw away from the current 3DS XL, but the extra $20-$30 really gives you a lot more leeway on GPU/RAM in specific. Having a strong launch lineup (Mario/Zelda at launch, DQXI?) is a must, not like the 3DS which had an awful launch lineup and having the launch closer to Christmas will ensure a good early sales. 

Then you can scale down in cost to $199.99, 7-10 months later fairly easily as manufacturing costs come down. 

Maybe $150 is a bit low, but I think anything above $199 is to high.

If handheld cost $219-$229, what price will be for home console in that case? Remember, Xbox One next year will probably have price point around $299, I dont think Nintendo aiming to have higher price for their home console than XboxOne/PS4.

I don't think hardware that I mentioned is weak for handheld, with that hardware I think they can easily have strong integration with home console.

I dont see higher price than $199 ($149-199) for handheld and higher price than $299 ($249-299) for home console, but if NX is some kind of hybrid device, i can see price around $250.

The recent AMD RX 3XX series is just a rebrand of older graphic cards with some of them having more Ram, including cards from the AMD RX 2XX series.

I think the key in the hybrid-console-handheld-business is scaling your games for the different machines. PC Games are very good with scaling their requirements for a wide range of possible hardware-configurations, there are even auto-configuration-tools like Geforce Experience from nVidia. Steam-Machines are going to do the same and this Smach Zero will play most games on low settings.

You can see similar things for example on iOS where some games can run on hardware that is four years old, but the same games are shining on the last iPad. This good perfomance on a so transforming platform (doubling graphics-perfomance every year) is simpler to implement when there is a litte number of hardware configurations that a programmer can detect and test in a reasonable period of time time like one new iPhone/iPad every fall.

This could reduce costs of developement for games that are released for this one platform on multiple machines, but this fact doesn't imply that the home console has to sacrifice most of the perfomance because of the handheld. Create a good handheld with a low-power SoC from AMD, put 2 GB of Ram in the device and a 720p screen. Runs all new games from Nintendo, but with lower graphics-quality for 199.99$ launch-price.

The home console can have a chip with higher perfomance, a higher resolution (1080p) and higher graphics-quality with 4 or 8 GB of faster Ram for 299.99$. The difference between games on those two devices would be closer than what we have seen with Smash Bros. on 3DS and WiiU.

Factory-Costs would drop soon with the use of standard-parts and it would be possible to maintain attractive hardware-prices with making some money on every sold machine. When 2018 or 2019 arrives and 4K is the new gold-standard for TV's like FullHD is today, new games could implement a third graphics-tier, a new home console with 4K launches and a new handheld with 1080p-support. No game-drought, because the whole library of games would be compatible, older games without 4K-tier-graphics just would be upscaled.

This is the only way hybrid should work.