It won't flop.
Despite Sony and MS fanboys constantly bitching at each other over who is better, Nintendo's fan base is hardcore, worse than Sony and MS fans. Nintendo will do the exact same predictable shit as always and Nintendo fans just buy it all.
Nintendo will use the cheapest parts they can find in order to maximise profits while at least attempting to create something that could perhaps compete graphically with the 360 and PS3. The cost will drive gamers to buy it, as well as the newest novelty feature they decide to add. Then they'll release the same games they release for every console. Same old Mario, Zelda, Pokemon, other kiddie crap or exercise stuff they've tried to do from Wii, while perhaps doing at least one or two decent adult games like Resident Evil and GoldenEye.
If they copy their handheld formula, they'll release a new version when sales drop, but not before releasing some new colours to see if that helps first.