I think there is something said for consolidating by either having two devices that have the same operating systems and ask developers to program one game for both units...have two clearly defined specs for both. Or better yet, just have one system that is both portable and a console with one single set of specs. Sure there will be compromises with design and power.
But... people hate compromise. Plenty of people that have smart phones, but there is still large demands for tablets that do essentially the same thing as a smart phone. Why? Because people hate small screens for touch screen apps. The details always matter and one perceived inequity is generally enough to make a market hate a product. If people could reasonable fit a 10" cell phone in their pockets tablets would be gone. Who knows with OLED technology where the screen can fold, maybe we'll make it there and tablets will go extinct. Devices that do alot things but nothing really well tend to fail in the market. Remember the cell phone/handheld game console? Good idea in theory, despite a few attempts has never amounted to much. I'm actually having a hard time thinking of something that attempted to do a lot, wasn't really great at anything, yet became even a moderate success.
The least powerful home HD console is the 360. If you can't have at least that much power in a handheld it's not worth even trying a console/handheld hybrid. That's going to cost a bunch probably $600+ to make a handheld that powerful. If you cost that much you'll lose the handheld market. Heck, if you cost half that you'll lose the handheld market. Even then I don't see the home console market getting that excited over 10 year old tech and finding a reason to purchase the console especially with cheaper; more powerful alternatives available.
But I think Nintendo could work out a balance...and the benefit gained by software support for just one system is huge. Let's break it down. How many games does Nintendo release for 3DS a year? 4-6 games? How about Wii U? 4-6 games? This is Nintendo's current output. We can't just say Nintendo could buy or create more studios and release more games...because resources are limited. Time, money, man-power are all costly resources, and Nintendo can't just throw more money out there. Now, what if all those resources went to one single console. Potentially Nintendo could release 12 games a year at current resource levels.
Maybe you are only interested in 4-6 Nintendo games a year, but I think through 1st/2nd parties you drastically underestimate how many games Nintendo comes out with. This has been a tough year for the Wii U with Nintendo admitting they under-estimated HD development and delaying many games. But they've still come out with Pikmin 3, NSLU, Game and Wario, DKC, Mario Land, Zelda WW, Wii Fit U, Yoshi Yarn, and Wii U party and that excludes games they've worked directly with third parties such SMT x FE, Mario and Sonic, Sonic Lost World, Bayonetta 2, etc. I've missed some I'm sure but Nintendo has been the biggest software company in recent years and is usually at the top with EA/Activision with largest developer market share. They release alot of games, people are generally hard on them because they miss some big third party games and want Nintendo to release even more games to make those losses seem insignificant.
Also, I never said you can snap your fingers and get a game created. Nintendo has never been cash strapped and based on some of the indie games I've played recently, there are alot of talented developers out there that Nintendo could acquire. Yes, it takes time and investment, but Nintendo has the management know how and the available resources to grow. The only explanation for why they haven't is they don't see that growing and developing more software is a financially viable and they choose not to expand.
How could Nintendo use those 12 games releases a year? They can't release 12 huge Mario, Zelda, or Pokemon level games a year. But realistically they could shoot for 4-5 of the games to be the big epic games...with the other games being smaller budget titles to fill in the different genres, to give development teams abilities to create pet projects, artistic projects, innovative or risky projects.
Nintendo follows the Apple model. They release highly profitable games and don't care too much for games that break even or make a small profit. They occasionally throw a smaller project a bone(mainly because they think it could be a success), but their intent is never to get in a habit of releasing indie type games for the market so the market can have more games. And even well liked games such as Eternal Darkness will never get sequels because they simply don't sell enough copies.
From a hardware point of view, Nintendo potentially has the ability to sell MORE systems not less. If Nintendo went for a single system that was a portable and console...families would still potentially buy two systems for their kids on the go. They could potentially buy one for each TV...knowing that their kids or themselves could take it on a car trip. Families would be supportive of buying games for a single system and use it on the go or at home. It provides additional value.
The 3DS is a fantastic system at a good value for families now. I don't see how you reach any more people than the 3DS is reaching now except for releasing more games and eventually lowering the price. Depending on the cost of this hybrid you will definitely not reach the full 3DS market. Some people I'm sure have multiple PS3s but expecting to buy a several hundred dollar system for each kid seems to be a stretch to me.
Finally, it can create unity in infrastructure. Virtual Console works for both console and handheld...and are not separated.
Sony does this now, Nintendo doesn't need a single system to do this. I think too often we put the cart before the horse thinking Nintendo needs to consolidate to do certain things and they don't. This could be done now, but won't because Nintendo knows they can sell the same game twice to somebody who really likes it and that is the model they are going with.
Just like the comment of Nintendo restructuring and working with smaller teams on projects. Great, why can't they do this now? There was a good discussion on here one time about something just being wrong with companies that need games to sell millions of units to recover their investment and needed to re-org. Nintendo suffers from this too. The whole FE needs to sell 750,000 units topic was depressing. Nintendo should be able to come to the market with good games that don't need to sell that much to make money. But that re-org doesn't need to coincide with a hybrid model it can happen now (but probably won't).
My question is simple...is 3DS 3rd party support lacking? Did the DS have a lack of 3rd party support? NO. Because as of now, Nintendo's portable devices are still profitable for the developers to support. This would not change with a change in infrastructure...and it could mean, 3rd parties just use their teams that develop portable games anyway, to focus on Nintendo.
Yes and no. Clearly the 3DS does not have the 3rd party support of say a PS3/Xbox 360. 3rd parties still prefer to support tablets over the 3DS. 3DS 3rd party support is > Vita 3rd party support but saying it is great is a stretch. 3rd parties could support the Wii U now but they don't. Not sure why a unified platform will solve anything on this front.
I just don't see how a unified platform benefits Nintendo financially. I think people that prefer console gaming over handheld gaming see this as the solution to fix Nintendo's home console problem. But Nintendo doesn't have a problem at all on the handheld front. And they potentially destroy that market by making a high powered handheld that costs more than the Vita. I don't know why they'd take that risk. As a gamer that buys most consoles, I don't know what releasing another under-powered home console would accomplish in that market and that would have to be the compromise they make. So I guess I still don't get it. Yes, if processing power continues to increase it may be inevitable, but we are along way from even 360 power in a handheld. Killing off the handheld cash cow that Nintendo has could actually lead to the demise of Nintendo I think. That's a big bet to take that a hybrid could be as financially successful.