Nintendo has never tried to compete on power with the leading home consoles. And, with a longer legacy in portable gaming, it has always kept things low power, and focused on the vast all-ages gaming market, not the cutting edge FPS-crowd.
So, it makes sense that Nintendo's recent news, the Switch would be more like a portable or hybrid micro console. The 720p tablet with a dock uprating the display to 1080p for TV use, and a flexible controller is a cunning idea, but a big risk as the console market continues to sway in Sony's direction.
The console is called Switch and splits out its controllers so you can use it like a PS Vita, as a small screen with wireless controls (Joy-Con), or plug it into the big screen via a dock and play with a standard controller. The launch video explains it better. Specs should follow soon, although Nvidia's Tegra X1 chip is running the show, and the new Hyrule trailer looks pretty swish.
Switch could easily recapture the market lost by the Wii U and pick up people who like the PS Vita but are disenchanted with Sony's handling of its portable.