It's long been rumored that Nintendo's next console will bridge its frontiers in the handheld and home console gaming markets to unify both spaces. Today's rumor further substantiates that claim.
Unseen64's Tamaki has shared on Twitter that what he's seen from "talking to the right people" is that the Nintendo NX will not be a powerful machine like its Xbox One and PS4 adversaries. He posted:
This lines up with Nintendo's business strategy for the past decade where it has relied on its strong first-party to drive sales. With the 3DS this plan has been successful, having sold more than 52 million units in just four years. However, the Wii U's first-party-centric library has struggled and is on the path to becoming the worst selling Nintendo device in history. Sharing software between handheld and console may be just what they need.
If Nintendo were to go with another underpowered device, a future where it's able to support the majority of third-party may be grim. With the gaming market shifting to become increasingly dependent on third-party games, this could spell tragedy. First-party execution will be pivotal, and judging by Nintendo's underwhelming E3 2015 presentation it appears that many of its internal studios are already busy making games for the Nintendo NX.
The Nintendo NX is rumored to begin production this October, with an estimated release of June 2016.