I'm not forgetting those people. Like I said, I think the reason most of them are waiting is because they don't want to spend $400 (or $350, which isn't going to be a huge difference to most people who think $400 is too much) on a console and they're waiting until current gen consoles become more affordable. I doubt most people outside of ardent Nintendo fans even know that the NX is a thing that will be talked about this year (thanks in large part to Nintendo's complete reluctance to talk about it themselves), so I don't think there are millions of people holding off on an upgrade to see what it is, especially since Nintendo hasn't even officially announced that it will be a home console. No one knew about it before the beginning of 2015, so it certainly wasn't the thing stopping people from upgrading in 2013 and 2014. Like I said, for most people it was price, and putting another $350 or $400 console on the market isn't going to solve that problem for them.
I do think that's the market that Nintendo should target, but I guess where we disagree is how they should go about doing it. I think they need to make the best console possible that they feel comfortable selling at $250 if they want to attract a lot of those people, regardless of how it stacks it up to the PS4, and you're also much more likely to attract people who already have a PS4 or XB1 that way.
Again, I just think you are understimating the true size of the Nintendo fanbase. There have always been millions more Nintendo fans who would have bought the machine if it was on par with their expectations. SNES was the true successor to the NES but Playstation was the true successor for SNES for the vast majority of gamers. Many of them would glady return to Nintendo if they didn't have to scoff at the machines Nintendo keeps making.
On a dedicated Nintendo site they are the minority because we are all mostly die hard fans but on any non-Nintendo site or fanbase there is still a large outcry for Nintendo to return to glory. People who want a good machine from Nintendo are not fanboys rooting for sales like the Wii loyalists were, they are rooting for a Gamecube that doesn't cut corners. The ONE area most people would cut Nintendo slack these days unlike then is DVD, partly because unlike then everyone has dozens of multimedia devices in their homes now so expecting the Nintendo machine to also do those things is no longer mandatory, but on the gaming side people have been putting up with Nintendo BS for two DECADES. I don't know how old you are but it seems like you just don't remember the glory days of Nintendo or maybe it's been so long you have forgotten. Wii re-energized the core fanbase but that wasn't enough. Nintendo will NOT survive on them anyways, damn dude Wii U proved that. If NX ONLY sells to the die hard Nintendo fans its as good as done right now.
And I said it doesn't have to be $400 you are the one who keeps saying it does and I think you are dead wrong. They have sold machines at a reasonable loss in the past, we are not talking devestating losses, NX has been in development for two years and PS4 tech is already 2+ years old, the market moves faster now than it ever has, AMD has been innovating in recent years, Nintendo could cut costs where nobody would notice and get away with it, they have the cash reserves to take a small loss on the hardware and make up for it with the attach rate their consoles are famous for, they are UNDER NEW LEADERSHIP, they are facing a desperate time in their history that could make them go the way of Sega/Atari or they could rise up and get rid of Xbox. Also you seem to forget there are a lot of people NOT buying the Xbox One right now, those are also potential sales and the people not buying the Wii U, nobody, not you, or me, knows how many of them would buy and NX.
All I am saying is just for once I want Nintendo to bite the god damn bullet and just make the machine the entire fucking world has been asking them to since the damn N64 and IF it still fails fine we know for a fact the Nintendo brand is damaged beyond repair, if it succeed, and I believe it will, we are back to a Nintendo that can make aggressive moves going forward and hopefully remove the Xbox parasite from the world.
Even if they don't topple Xbox which is a pipe dream, let's be honest, they could return to their former glory, hell even N64 sales would have been damn good for most people. Right now they are struggling to get Game Cube sales and that is pretty bad all things considered.
But you also forget Nintendo has a cash stream on the side they can rely on to take some of the hit off NX, Amiibo, that doesn't look to be subsiding anytime soon and if they incorporate it into NX just right it could only improve their fortunes. They don't have to hit the $250 sweet spot, although honeslty I would LOVE IT if they did, but I think $300 is the best price the market can expect and at that price mass market penetration is possible, PS1 launched at that price and did phenomenally well.
Also again, you are underestimating the large number of PS4 owners who would trade in a PS4 for an NX IF Nintendo could make it worth their while and I believe there is a way to do it if they make the right console, and if all the rumors are to be believed then there is ample evidence that is something we can expect. At least something closer to what we want than Wii U was.