@osan0: Hmm, guess i was mistaken about strangers wrath then.
While some of the issues for 3rd party ports on Wii U are due to the cpu lacking quite a bit of SIMD performance, alot of the issue has to do with just how different the architectures are. In fact, it's pretty much on even grounds with xbox 360's xenon cpu in everything but SIMD, it even has more cache and can dip into as well as the eDRAM typically used by the gpu. Xenon is a very fast, but inefficient in order processor while espresso is a slow, but efficient out of order cpu. (Nintendo definitely should've beefed up the SIMD but I think they just didn't bother because their games are much more gpu focused.)
Of course developers that are so used to tools for the former aren't going to be near as good with the latter, with the lack of interest in putting effort into wii u ports from publishers.
But think about this - after developers get used to working with the GPGPU features of the ps4 this gen, it won't even matter much if it's lacking a bit in SIMD. They can just tweak the processor, make it an 8 core and give it plenty od l3 cache and let the gpu take over from there. So while the cpu is a bit of an issue this gen, it won't be next time. And certainly they would beef up the SIMD then.
Also, the cpu already draws less than 10 watts in its current form, at 16nm it could definitely be put in a handheld. You're right ARM would be even more efficient, but still.
You bring up a good point about them being used to arm on the handheld side, I could see Nintendo using ARM because of that, but there's an elephant in the room - the quote from Iwata..
ARM could definitely work out great as well, you're right about that. No matter what they go with though the multiplat devs will be there as long as it's powerful enough.
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