From the sound of it, they could make the next console and handheld play the same media, but then have the graphics and such scale to the system on which it's being played, sort of like how PC games are scalable depending on the capabilities of the computer in question. I'm starting to think that may be better than doing one hybrid system that can function as a console or handheld, as such a system would be too underpowered for a console and not portable enough as a handheld.