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I perfectly agree with your point. I owned every Nintendo handheld except the Switch, and the Wii. All of those consoles got just a few games, never more than 4 or 5. Meanwhile, all of my Sony console (1 to 4, Vita) got easily 10 games, and surely even 20+ on Vita and PS4 with digital.

When I want to buy a 3-4+ years old Nintendo SD game, see that it's still at 35€, and on the next shelf or online see big and more recent games on PS4 for 20-30€, the choice is quick to make. During the spring sale, I got The Witcher 3 and DLCs plus Doom for the price of Fire Emblem Fates... It's also a lot easier to take risks with smaller or less famous games when they're at 5-10€.

Nintendo's pricing policy is anti-consumer compared to their competitors, and the almost lack of digital doesn't help.