In a scenario where dedicated handhelds have become completely obsolete, consumers simply won't see an adequate handheld experience as added value. If that's the case, then what's the point? You may as well use the money spent on things like the display (even an "adequate" screen will have a considerable impact on the device's manufacturing costs) to build a beefier or cheaper console.
Sometimes a product may have little appeal when separated out and people have to pay money for it on top of something else. For example, someone may think "I don't really play games enough to buy hardware dedicated to handheld gameplay. Sorry, I just don't." But then if it's offered as part of a package, they may say "wow it's really convenient to be able to do both in one product. I never really pursued gaming on the go before, but now I think I may dabble every now and then."
This is a hypothetical of course, but there's really nothing at all outrageous with someone finding something appealing when they don't perceive they have to go and pay for it uniquely. I honestly think you're being a bit pessimistic too. I mean, straight up, Wii U's screen is fucktrocious, I'm sorry but in my estimation as put up against even the industry average, it just is. But that doesn't stop certain hardcore Nintendo fans from lauding the possibilities of dual screen gameplay. For everything, there's a trade off and it's always about finding the right path. You may be right that there is no right path here, but in my view gaming dedicated handhelds are gone in a gen or two without some real blue ocean shaking up. I am trying to conceive of concepts that can do this on a gaming dedicated handheld, and it fails me - but Nintendo has tons of R&D into trying to pursue something unique, so hopefully they figure something out. As I said earlier, never count an idea of Nintendo's out. I'm just weighing it as odds-poor.
Your example could be implemented in a more elegant way with two separate devices that talk to each other using a basic cloud service (believe it or not, NERD are actually working on cloud stuff in some capacity). A true hybrid console offers very few, if any advantages over Nintendo's planned universal architecture beyond the coolness factor that a docking system has for a small group of tech-heads.
Everything could be implemented more elegantly if given their wings room to spread and fly. That's just obvious. But it's not about coolness - it's about convenience. Wii U would have been a lot more appealing imo to a greater audience if the pad wasn't tethered to that prohibitively tiny window. It probably wouldn't have made it a success (too many other factors bringing it down), but I think it's an opportunity going forward.
The problem is that it's not really up to Nintendo anymore. The downward trajectory is clear everywhere. They can continue to make systems where Pokemon always sells well and Monster Hunter perks up their system month-over-month, but eventually even that's not going to be enough to hold up an entire pillar which is crumbling in most territories or which has been eroded away to dangerous levels. Only Japan and a few other minor or major territories are even doing decent numbers for the 3DS anymore, and if you look at how they now have to focus on Wii U, there's no indication this is set to improve.
You don't know how much I want to be wrong here. I have always enjoyed gaming dedicated handhelds since the GBA, and it gave me Mother 3 among other classics. But I try to be realistic here. With the continued proliferation of all-in-one devices, devices which parents are now buying even for their five year olds, it's getting harder and harder to imagine a future where people make room in their purse and/or pockets for yet another handheld device, let alone one dedicated to gaming.
This is the one area where smart phones really are destroying Nintendo's business as far as I can tell. Nintendo is fighting a real estate battle, where the victor gets that last position in someone's garment. And I don't see how they win it, people value pretty much everything else more than gaming, and everything else is in those phones, and you can get some gaming to boot in that trade-off. How does Nintendo compete with that? I can continue the mantra "good games, baby" until I'm blue in the face, but in my view that's a naive view of the industry at this point. Sometimes, even the best of games is not enough to change the realities of the market and where it's going. Sometimes people are willing to "settle" for the endless runner titles of iPhone. I'm sure Wii U is going to have some of the best games of 2015 looking at its lineup. But it's going to change nothing in its overall place.
A side note on the uncertain future of dedicated handhelds: while things have certainly been on a downward trend since the advent of tablets and smartphones, the latter also coincided with Nintendo and Sony releasing some of their least compelling gaming products to date. A lot of people seem to forget that the basic foundation of the 3DS was already set in stone well before iOS and Android became a threat. I'd like to see how Nintendo's first real answer to smart devices shapes up before declaring that market segment as not viable going forward.
I don't think they were the least compelling at all. I think outside of Nintendo's initial pricing and their misjudgment of people's desire for 3D, the unit itself got fantastic as soon as Nintendo dropped that price. And Vita is probably the greatest piece of gaming dedicated handheld hardware ever conceived, it's a virtual gamers dream. And I love the games, and don't care the indies are often on other consoles.
But my personal perspective aside, I don't think what happened has anything to do with their compelling nature or lackthereof; I think it has to do with people moving on. A lot of people more invested in this subject than I have done their research, and the correlation seems to be real. People are moving on from gaming dedicated handhelds, as unfortunate as that may seem. And it's not because 3DS or Vita are particularly ill designed handhelds either.
My comment was meant to be tongue in cheek. Nintendo has a history of sitting just a ahead of the major wave of success for technologies. They just tend to paddle out too early and miss the ride. Who else had video game consoles connected to an online network in the 80's?
Hard to tell sometimes when a comment is tongue-in-cheek on here haha. ;P
Nintendo's problem also is they can't seem to implement anything without putting their own unique Nintendo spin on it, which frequently leads to a much less pleasant user experience. If I had to criticize Nintendo on one thing, is that they often don't understand when they need to follow a good idea, and when they need to lead the way.
