@Sepewrath: If you make the system just slightly more powerful than a Wii U, and a little less powerful than a PS4, you are more or less hitting the same price range as a 3DS when it originally launched, keep in mind these things are set to ship late 2016-2017 and cost of production will have dropped even more by then. It will not cost close to 400, hell even the PS4 is dropping to 350 soon, so how can a system less powerful than a PS4 cost 400 a year from now? I suspect the system will ship at around 250-300 at launch which is on par with the price of a 3DS day one.
As for AAA games, Nintendo can keep making their own first party AAA as they always have, whether or not third party devs wanna invest the money is up to them, since everyone knows most of the AAA are going to PS4 and XB1 anyway, which leaves Nintendo the odd one out, so I expect third party to treat the system as a handheld and spend development resources as they would for a handheld system.
You keep calling it a console pretending to be aa handheld, this is where you and I differ, I prefer to call the NX a handheld pretending to be a console. If Nintendo is staying solely in the handheld business then why would they make NX have home capabilities you ask, its pretty simple $$$. Nintendo already has a monopoly in the handheld market since Sony is dropping out next gen, so really they own 100% market share in that sector, since they have no competition in handhelds why not try to bridge two markets into one and steal whatever market share they can from Sony and MS by adding a simple function of WiDi Game Streaming? All you need is a WiDi Stream dock which costs like 20 bucks to make, and boom you now have a handheld that can double as a home console, and since Nintendo already has a monopoly in handheld they don't even need the home console userbase to have a successful run, any home console user they manage convert is a bonus for them.
Basically the NX is a handheld that also allows Nintendo to wrestle in the home console market without actually risking anything, if nobody from the home console market buys the system so what, they're core handheld userbase will still buy it. Its pretty genius move, you are essentially making a handheld console that has the power to steal home console market share away from the big two, while still keeping an monopoly in the handheld market. Its the best of both worlds for Nintendo, also saves Nintendo billions in dev costs, since they now just need to create one game for both home and handheld as opposed to splitting dev costs to satisfy two different software lines which would allow Nintendo to make big AAA games that you desire, because instead of wasting money making two different versions of Mario for handheld and for home they can pool that money and make one really expensive Mario game for both home and mobile. If you could pool the money from Triforce Heroes, Zelda HD, Link Between World into one game for just one platform, you'd have one hell of a AAA title. This was always Nintendo's biggest problem two many platforms too little development funds, NX solves that problem.
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