Are you saying that Shield products are cheap knockoffs? Really?
An Android machine or a streaming box for PC games is never going to have the prestige of a console with dedicated software support and hardware-software integration.
I feel like I should clarify here. I'm not trying to say that I think the NX will be a home console and that the 3DS will live on forever. What I meant to say is that I think this shows that the NX leans more towards the home console side of things than the handheld side. Obviously we're pretty confident that it can do both at this point, but the 3DS news and reports of "pretty bad" battery life for NX lead me to personally believe that Nintendo won't talk it up as something that you'll be playing on the train every day by itself.
The only thing Satoru Iwata has publicly stated about what NX is is this:
Though I cannot confirm when [NX] will be launched or any other details of the system, since I have confirmed that it will be "a dedicated video game platform with a brand new concept," it should mean that we do not intend it to become a simple "replacement" for Nintendo 3DS or Wii U.
Your question also included the "current notion of thinking about home consoles and handheld devices." When it comes to how dedicated game systems are being played, the situations have become rather different, especially between Japan and overseas. Since we are always thinking about how to create a new platform that will be accepted by as many people around the world as possible, we would like to offer to them "a dedicated video game platform with a brand new concept" by taking into consideration various factors, including the playing environments that differ by country. This is all that I can confirm today.
https://www.nintendo.co.jp/ir/en/library/events/150508qa/02.html
Statement from Iwata: NX's "brand-new concept" will consider the play environments that differ by country (Japan vs. overseas), and is the answer to the "current notion of thinking about home consoles and handheld devices."
Context: The way people primarily play games in Japan is on mobile/portable devices.
Only way Iwata's statement about the NX concept appealing to players around the world is true: if NX is viable as a mobile/portable device.
I can't imagine NX
not being heavily billed as a portable if they have even the slightest hope that it will succeed at this, the only thing we've heard specifically about it to date.
The Shield isn't the hallmark of game consoles.
Your comparison to Nvidia is not taking into consideration so many other factors either. Customer Support. Retail Support. Warranty and warranty support. OS design. kid-proof design. Global market design. The fact they are selling from Japan. Advertising!!!!! Nvidia just strapped together common components.
Nintendo needs to price higher even if they came out with the same exact product.
I'm struggling to think of a successful Nintendo system that wasn't priced
significantly cheaper than other devices in the category.