Difficult to say if that image is real or not. The argument against the image states that it's probably a photoshop based on this patent:
So, even if the image in the OP is fake the controller concept is real enough. That, at some point and possibly still now, Nintendo thought it was a good idea to make a bizarre controller like this as the centrepiece of their new console.
I don't even know where to begin with this thing; it's a disaster on so many levels. I think the flaw that's most glaring is the elliptical screen, this non-square shape just looks like it would lose so much field-of-view that it will make most games unplayable. Only those games designed specifically for this accursed controller would have a chance of even looking good, which is once again going to anger third-party publishers. Since this ham-fisted design means no ports and no cross-platform development, it's either a Nintendo exclusive or bust. Naturally, most third-party publishers will simply opt not to develop games at all for the NX, leaving Nintendo with another pitiful games drought, making their console even more unappealing to gamers.
If anything, this patent shows that Nintendo still has yet to appreciate that third-party support is essential if they want to survive as a console manufacturer. I mean, it’s been nearly thirty years since Nintendo tried to control the whole games industry with their monopolistic licencing practises, treating third-party NES developers like trash, as if Nintendo was the only develop that mattered. Even now, Nintendo still treats third-party developers badly, expecting publishers and independents to jump on board with their latest console, despite the fact that it doesn’t meet the needs of third-party game development.
At this point the NX will probably be Nintendo’s last console. These might even be the last few years of Nintendo as a company period, unless they suddenly break 30 years of dogma and start taking other game platformers seriously. I know that Nintendo’s investors want to see change, Nintendo games on mobile platforms and consoles like the PS4. However, Nintendo’s management is a different matter entirely, they’d run Nintendo into the ground and destroy the value of all their IPs before admitting that their console are terrible and nobody wants to buy them.