Once again, Nintendo has chosen the road less travelled. Assuming it's based on the Tegra X1 processor, NX will be considerably more powerful than Wii U, but it won't match PlayStation 4 or Xbox One for grunt, even as those machines are set to be superseded by more powerful hardware refreshes. (There's a chance it will get the Tegra X2 instead, about which little is known - but that's pure speculation on our part, and it wouldn't fit Nintendo's usual preference for mature, cheap parts.) NX will instead be framed as a unique proposition: a portable console that seeks to erase the line between handheld and home gaming, supporting TV display at home and local multiplayer on the move. It's even turning its back on optical discs as a physical medium for games, opting for cartridges instead. The notable concession to normality appears to be a standard control set-up that should support most popular styles of console game.
Third-party publishers are not going to flock to this console; with its atypical specs and design and demographic, it's just too much effort to tailor to.
But let's not fool ourselves. The notion that Nintendo would, could or should try to compete with Microsoft and Sony in the 'traditional' games console market is deluded. It doesn't have the motivation those two conglomerates do to push their operating systems, online stores and content portfolios into people's homes. It doesn't have the stomach for the technological arms race they are initiating right now, with their cycle-breaking mid-generational updates. On a more fundamental level, its management doesn't see value in making the same product the others do. They think it would fail by the standards of the market (because it wouldn't take big chunks out of PlayStation and Xbox's businesses) and by their own standards (because it would be boring), and they're quite right.
Necessity is the mother of invention, and for all its apparent wackiness, NX is a child of necessity. It sounds disruptive, but it's actually cautiously strategic: a rearguard action on two fronts. Taking a historical view, Nintendo's success in home consoles is unpredictable, while its success in handheld consoles is dependable, but on the wane. As the firm strives to keep its hardware offering alive, it makes perfect sense to roll these two parts of the business into one, leaning heavily on its cast-iron grip on the portable market.
NX isn't just bean-counting, though; it speaks to Nintendo's very soul. The company has been trying, and usually failing, to synthesise handheld and TV gaming ever since the Link Cable for GameCube and Game Boy Advance. There's something about gaming as a tactile experience, in your hands, that has seemed philosophically important to Nintendo's designers ever since the days of Game & Watch. It must come as a huge relief to them that mobile technology is finally good enough that they don't have to choose any more.
NX is Nintendo's only realistic option. Doubling down on pure handhelds can only lead to diminishing returns at best. Competing with Sony and Microsoft would be even less likely to yield success, and more to the point, it would be pointless. The best route to graphically shiny Nintendo games delivered in a conventional format is for Nintendo to exit hardware altogether and become a third-party developer, addressing the biggest possible audience. If that is what the world really wants, then NX will fail and that is what it shall have.