I can't say I expected this, but it makes a lot of sense. The Wii U was well loved but didn't sell well. With this kind of set up, they get to provide the same kind of experience to their home console users with a fraction of the development resources, while making their bread and butter mobile users happy with more powerful hardware. Meanwhile NVIDIA has hemorrhaged money on their mobile chipsets for years, and now they finally have a committed customer that can take advantage of their graphics expertise, ramp up production and maybe even lead to them becoming more competitive in the smart phone and tablet markets. Nintendo gets the kind of leverage Sony and Microsoft had over AMD when they were desperate for customers for their APUs, NVIDIA gets to take back a slice of the console pie.
Cool.
I wonder how well this will compete with new cell phones and 2.0 versions of the xbox one and playstation 4.