I honestly don't think replacing the handheld with a tablet is a good idea. How can you play your typical Nintendo game without buttons? And how can you share your games between platforms if you can't (easily) duplicate the same experience of the home console version? Not to mention the difference in horsepower.
A tablet could appear, but only as a 3rd pillar.
By developing 2 machines that can play the same game, the save financial and human resources can be used to develop a new - or second - line of game development.
What i mean is, with a tablet can create smaller games (with assets and engine they already know) that can also be played on the handheld and home console. But the other way around wouldn't work, of course.
This tablet would also have access to the android or ios market for games, creating it's unique market of Nintendo games. A plus to sell the console, but not to the point of replacing the experience provided by the handheld or home console.
Iwata already mentioned they would like to have more form factors, but the need for manpower doesn't allow them to do it.
This could be the way to make things work without sacrificing any of the markets.
I wasn't saying that the tablet will replace the Handheld devices. I meant that the tablet you will buy separate and the home console and handheld device will be bundled. The Wii U Game Pad will have it's own ARM processor, that way you can take it on the go.
And how can they all be the same with different power? How do they do it with PC? My home built computer can play any game on the market, even though it's not super powerful, and a PC with the most advanced CPU and the best GPU can play the same game and it look GREAT so much better then the game I have.
Whovian12 -- Nintendo Network ID.