Ugh Nintendo...
Want to make hundreds of millions? Stop being idiots. Release a console that equals everyone else in performance and ease of development, release an ergonomic classic-type controller for FPS and action games, secure all the major 3rd party games (super easy with an AMD SoC), and finally.. release your kickass 1st party games on the same system.
Sony and M$ can't compete with this and they know it. Stop overthinking it.. Remember how successful N64 was? Just do that again. Powerful, 3rd party support, good controller, and the typical 1st party games.
I thought they were on the right track but now they are talking about ARM.. again.. ugh this is so frustrating.
Nintendo worked with ATI, not AMD. If I had to guess, AMD may have wanted Nintendo to take the whole kit, CPU and GPU (APU) while Nintendo probably just wanted the GPU.
I've said it from the start, with Miyamoto becoming president, I don't know why anyone here thought he'd deviate from the plan he was pushing when he was lead of Nintendo R&D.
Post #10 in this thread:
However, if AMD is in the next console, I expect an ARM processor too. Nintendo has been vocal about integrating their mobile and console business.
The N64 wasn't successful compared to its counterparts. N64 sold roughly 30mil consoles while the ps1 sold roughly 100mil. Not even close...
Though I do agree with the rest of your statement about console parity and securing some form of 3rd party support. A gaming pc and a nintendo console always works out best for me.
I think you sort of answered why I believe Nintendo isn't going to go that route. If you have a PC and a Nintendo, chances are you'll buy all your 3rd party titles on PC.
If Nintendo can get you to buy both sets of their hardware (console + handheld) and most of their first party titles and some exclusive third party titles, that's a huge win for them.
Again, they sold over 10 million copies of 2 games. Neither Sony nor MSFT can boast that and that was with a install base 1/3 to 1/4 of it's rivals.