This is the most clear Nintendo has ever been about a new platform, yet there is still flat out false assumptions about the platform even though statements from Nintendo exist that prove them false.
1. Nintendo's next platform is an OS. (nicknamed NintendOS)
2. NX is the first hardware device to use NintendOS.
3. NX will share at least a majority of its gaming library across all NintendOS devices, it might also only have a single SDK (this would be the best foot forward solution) another solution they should go with is game cards like 3DS uses, they should be able to get them to 16GB and maybe even 32GBs at some point, but given the nature of downloading updates/patches, the entire game wouldn't need to fit on the card anyways, much like XB1's MCC.
4. It doesn't matter what individual devices sell, the NintendOS success would be measured by the success of all NintendOS devices. Iwata has stated that they might release a 3rd or 4th device which lends itself further to the idea that these devices would share a library.
5. Nintendo doesn't need a 2nd platform to make games on, as they have given that role to iOS and Android, where they will start releasing games fitting that style of play.
6. Mobile games simply don't take the resources of a 3DS or it's successor, meaning Nintendo's resources tied to mobile will drop back to GBA or even GBC, giving more resources to NintenOS games which they will be able to release 20-30 games a year alone on.
7. NintenOS needs to be scale-able, the best way to look at the tech is to try and figure out the handheld and multiply that by 8x for the console, giving it a balanced and easily scale-able target.
Specs: AMD SoC APUs @ 14nm (globalfoundries)
The Handheld:
540p qHD resolution. (1/4th native console resolution of 1080p, for local multiplayer reasons)
CPU: dual core
A57 - K12
600mhz-1.2ghz
GPU: GCN successor 102 gflops - 307 gflops (The reasonable goal would be to match Wii U's 720p performance or exceed it that is 176 GFLOPs)
128 alus - 256 alus
400mhz - 600mhz
memory: 2GB
The Console:
No discs (smaller casing, better form factors, and a single store front rather than trying to push 2 different platforms on store shelves)
BC with Wii U through espresso co processor bolted onto MCM.
CPU: 8 core K12 /w SMT @ 2GHz+
GPU: 819 GFLOPs - 5 TFLOPs
"minimum" 512ALUs (8CUs) "likely" 1024 ALUs (16 CUs) "unlikely but possible" 2048 ALUs (32 CUs)
0.8GHz - 1.2GHz
8GB HBM - 16GB HBM (nintendo always spends money on memory, and has been the focus of their consoles since the Gamecube.
The Reasoning:
Nintendo isn't going to be in a hardware cycle any longer, they will not have droughts like the last 3 consoles either, with a single SDK developers might be releasing on the platform in general and only lock out titles based on minimal specs as Nintendo will release more devices, and can react quicker to the market than Sony or Microsoft while still building up a single install base thanks to NintendOS. If they release a console next year, they can release gen 2 of NX console in 2019 alongside PS5/XB2, Nintendo for sure isn't moving to the cloud anytime soon, they don't even have the option so their best option is to move away from tying their install base to individual boxes, and creating an ecosystem, currently that install base is ~65m gamers with a minimum of another year and a half of sales from 3DS/WiiU, I'd say the market for Nintendo isn't quite as unhealthy as you might hear from around the internet as that number is about 2/3rds of the current generation across all dedicated gaming hardware.
If Nintendo goes this route, they can react quite quickly to changes in the market, release a tablet with some buttons and support it without adding additional resources, not worry about failed devices such as the VB as they would be "add-ons" to the platform and not platforms with development teams of their own, requiring resources or even extra marketing.
If Nintendo released a handheld capable of Wii U's graphics and modern tech (for a handheld) it would mean 3rd party support would increase from western studios, companies like Ubisoft don't release Assassin's Creed on 3DS because of the lack of engine compatibility and basically remaking the entire game, but stripping down a PS4 game to run on the Wii U, well it has been done before and is done now for PC, so I find it likely that western support would increase, console 3rd party support would simply get the handheld's 3rd party games and any extra support the handheld receives would come to the console if it used the same media and played the same games, even if developers were completely lazy about it, you'd still get 540p wii u games, which while not the best looking, it would still be a large improvement over games like MH3U.
Bonus: Pokemon 3D game for consoles
. This is why I'm excited for the NX, as a Wii U / n3DS owner, it would have been nice if they shared a library with purchases going into an account like steam.