The question isn't should Nintendo's successor have Wii U or PS4 graphics, but rather PS4 (~$199) or ~"PS5" graphics and a higher price (~$399)
Nintendo's 3rd party support is not coming back if it had the same or greater level of hardware than PS5, Wii U still doesn't receive last gen ports to highlight the problem, their market isn't big enough, so a lower price is going to help with 3rd parties more so than parity of specs, just look at Vita getting better 3rd party support than Wii U and you'll see I'm right.
Ok, what we know they are doing:
- Combining hardware architectures and API (they will share at least some of their game libraries, if not the vast majority of them)
- Releasing first new device in 2016 (Iwata's comment about ~2 years from april)
- Using AMD (AMD's own comments about getting into the handheld market and Nintendo's architecture comments leads to AMD hardware IMO)
- Handheld first (while 3DS might be more successful than Wii U, it doesn't have a similar development environment to future hardware, this means it will continue to use more resources and delay other software)
- A console in 2017 exceeding PS4's hardware specs, should be quite possible at $199. (However a tablet controller might still be needed)
- If the handheld is using a touch screen, the console will need to use one as well, thus a tablet controller is probably not going to be optional.
Nintendo should be looking to price themselves downwards, they don't really have to replace these devices in the future, it could be more like the original gameboy, in that they keep redesigning the hardware, but they never really drop support for the original. The console will also probably be 4x as powerful as the handheld in raw numbers (not including clocks) What I am talking about here is driving different resolutions in the same architecture with the same performance; because this is likely the goal with these devices, the handheld being a qHD screen (quarter full HD) or 540p (basically vita resolution) is likely, as the console will probably target 1080p (it could support more than this most likely as any modern AMD card does, but this would be their target resolution for first party titles)
Likely specs for Handheld:
Low end $149 no Wii U BC
- AMD APU /w 2 AMD CPU cores (A57 ARM) and 2 CUs (128ALUs) built on 20nm or AMD's current processor node for 2016.
- RAM 1GB +10MB edram (2MB L2 and 8MB L3 APU cache)
- 8GB flash for OS + SD card slot
High end $199 /w Wii U BC
- AMD APU /w 4 AMD CPU cores (likely A57 ARM cores) and 4 CUs (256ALUs) built on 20nm or 14nm based on AMD's current (2016) mobile APU chips.
- RAM 2GB +36MB edram ( 4MB L2 and 32MB L3 APU cache)
- 8GB flash for OS and an SD card for added storage
Remember, the console will likely spec 4x these numbers, so it would look something like this:
Low end $199 /w Wii U BC and Gamepad
- AMD APU /w 8 CPU cores (A57 ARM) and 8 CUs (512ALUs) built on AMD's current processor node for 2017 (16nm or 14nm) GPU would be clocked higher than the handheld's GPU and would allow for added effects with 1ghz being likely, so 1Tflop of power (XB1 would be ~30% more powerful)
- RAM 8GB DDR4 +36MB edram (4MB L2 and 32MB L3 APU cache) density is higher on DDR4 and APUs benefit from the extra bandwidth a lot, it's lower power and would be cheaper than DDR3 at this point
- 32GB flash for OS and user + SD card slot and USB HDD external options
High end $249 /w Wii U BC and Gamepad
- AMD APU /w 8+ CPU cores and 16 CUs (1024ALUs) built on AMD's current processor node for 2017, GPU would be clocked higher than handheld, likely 1GHz or higher, giving it 2Tflops 10% more power than PS4.
- RAM 8GB to 16GB DDR4 +36MB edram (or more)
- 32GB to 64GB flash for OS with SD and USB storage options
There is certainly other things that could happen, these are likely set ups for the devices based on AMD products, Nintendo using an abstract layer means that customizing hardware won't yield similar results as before, so off the shelf parts are nearly guaranteed minus some light customization for specific hardware emulation.
Nintendo's goal should be to sell as much hardware as possible, release a single Devkit for both devices so developers build 1 game to release on both, this would combined their handheld and console market, which would greatly increase Nintendo's visibility to 3rd parties, just taking a quick look at the current generation hardware, these are the numbers:
- 3DS: ~45 Million
- PS4: 10 Million
- Vita: ~8 Million
- Wii U: ~7 Million
- XB1: ~5 Million
If Nintendo's current hardware was 1 architecture, developers would release one title for both devices at once, meaning that making a game for Nintendo's platform would target 52 Million gamers today, 3rd parties would also be able to bridge the gap of mobile and traditional gaming by targeting 3DS's successor and wouldn't worry about touch controls as Wii U's successor would still likely carry the gamepad. This is Nintendo's only real chance to get back 3rd parties, and even if they don't come, Nintendo droughts would be gone. Nintendo releases ~25 titles a year, this would increase resources and allow for even more titles yearly but even with just ~25 titles a year, that is ~2 titles a month + 3rd party and indie support (3rd party support Nintendo receives today, such as Sega, Namco, Ubisoft, Activision)
The above paragraph isn't really speculation, it is an analyst of Nintendo's stated plans and what fruits it would grow.
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