Nintendo's market is split, first thing you do is combined that market. It does a multitude of things for you as this post on neogaf can explain:
http://www.neogaf.com/forum/showpost.php?p=145423615&postcount=291
Thraktor: "Furthermore, this misses a number of important aspects of a "cross-buy" scenario for a company like Nintendo. Firstly, as I mentioned previously, it would free up their internal studios to release more games in new franchises, which increases the chances they'll create another "killer-app" a-la Wii Sports. Secondly, Nintendo could use cross-buy as a means to encourage people into purchasing digitally, by only offering it with digital purchases. While I don't have numbers in front of me, I'd be fairly confident in saying that Nintendo would make as much off a single digital purchase as they would off two physical purchases of games, which would make it worth their while even ignoring the above RoI calculations.
Fundamentally, it becomes more profitable for Nintendo to move to a cross-buy model the closer the home console and handheld hardware come to each other, even if a large proportion of customers would otherwise buy both games. With the coming generation, it's entirely feasible for Nintendo to use identical architectures for both CPU and GPU across both their devices, and although performance levels would still differ quite considerably between the two, with appropriate tools the cost of scaling assets down for the handheld version shouldn't be at all prohibitive. I can't really see any scenario where Nintendo wouldn't be more profitable by treating both of their hardware devices as a single platform when it comes to software development.
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He is right of course and Iwata already outlined this, moving their platform into NNID rather than hardware. Iwata has also stated that this would allow them to produce more devices than just 2, of course your hardware performance could differ in all of them, so the question of how powerful is simply the wrong question to ask, they could release games with high and low settings put right in the cartridge itself (and I would expect them go with with a successor to the 3DS cart because they need retail space, though NFC keys could be a solution as well) What Nintendo is aiming to do would allow them to react more quickly to products, fight in more spaces directly and allow more game output because all of there games they produce yearly would come to every device under NNID, that is ~30 games a year and to top it off, they can free up entire teams that work on handheld versions of their games to produce more unique IPs like Splatoon.
The only thing they can't really do with this set up, is release products at the same price, meaning a mullins (ALUs) like handheld in 2016 might cost Nintendo $149 or a more powerful version could cost $199 but at that price, they would need to release the console at $249 with HD graphics. This set up would allow Nintendo to launch an "Ultra" version of the console 6 months to a year after PS5/XB4 that is the same price and more powerful than their competitors. This is simply copying the PC space or iOS space. It's steambox if Valve was the only one producing the hardware products.
