Yeah, Nintendo needs to just focus on the handheld market and stop making gimmicky, underpowered consoles. Maybe even publish some of their IPs for Xbox and PS.
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I am completely against that. The reason I buy Nintendo consoles is because thay are gimicky and because their IPs are exclusive to their own platforms. I buy Xboxes for all my hardcore, mature, "Dudebro" games. I buy Nintendo when I want a good time. Also, Nintendo needs to keep making consoles, becuase unlike others, Nintendo doesn't make games for game systems, they make game systems for games. What I mean is, their systems are made to deliver unique experiences. THey do things differently, and people know. When thay do something, it gets copied. The Wii's motion controls? That brought us PSMove and Kinect. The Wii U's GamePad? PS4 streaming to the VSVita and Xbox SmartGlass copied that. TL;DR Nintendo HAS to keep making consoles.
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It really doesn't matter how underpowered the console is. People buy Nintendo consoles to play Nintendo games, and there's no alternative to the current console if you want to play new games. Less power means a lower price, and that's something that definitely matters. Accepting that games are Nintendo's strength, the company should focus on getting games to as many people as possible-- a lower price would help here. But I agree that the hardware innovations need to go, mainly to help reduce cost.