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Their hardware solves problems nobody is really having. People only buy their hardware because they want to play Mario and Zelda.
I'd say this is my experience. I bought the Wii, we played Wii sports, Mario galaxy (which was a **** GREAT series, I still play it on the Wii U /backwards compatible) and Zelda. I bought the Wii U, we played Mario Kart, Mario World, and Zelda. I would play the Metroid Prime series, which was also amazing (and I did buy the collection on the nintendo store to play), but they have yet to make another one.
And that's... pretty much it. I did play Bayonetta 1 when it was a nintendo exclusive, interesting choice there.
I don't think this thing is going to make portable gaming people leave their DS3DHDSGBX, as it's not THAT portable (and the battery life on those things is measured in WEEKS), and to have "portable quality" gaming either the power of the hardware or battery life is going to suffer. I love the DS. I still throw my ancient one in my bag for airplane flights. But I wouldn't do that with this thing. Why would you? My kids have 75$ tablets now capable of playing games, reading books, surfing the net, watching hulu/netflix/hbo/amazon prime/ running a hundred different educational apps. Why would you take a device that is bulkier, and does one of those things?
So.. for most people it will be a console, but not really a console, and will not be portable at all. So, likely a much less powerful console, that runs the handful of Nintendo first party games released for it (and maybe 10-12 third party ones at launch, then nothing else). Just like the last 3 systems from Nintendo. I'll likely still buy one, it seems like the first Christmas after a new Nintendo system shows up we pick it up, and I love their first party titles. But I'm paying 300 bucks to play Zelda and Mario. I'm comfortable with that, it seems.