It's going to be very hard for the Switch to be unsuccessful commercially. It is low performance hardware at a high retail price with most of the software sold Nintendo's own software and its based on an off the shelf Tegra chipset without customisation. Even if it only sold 10 million Nintendo would probably be profitable.
As a consumer I'm a bit disappointed with it I have to say and will likely buy when more software is available and the prices are lower but I just have too much gaming hardware anyway. Same situation for me with the wii which I didn't get until much later so perhaps another sign of a very successful console. I tend to focus more on the games than on what is trendy to buy. I bought a super nintendo, N64 and Gamecube pretty quickly as they had lots of games I wanted to play.
Considering Nintendo has basically abandoned home consoles instead making a more powerful handheld that can also be used as home console I guess it is fair to say it does join together their past handheld and home console products into a single product and therefore is pretty much a downsizing operation if the revenue reduces compared to both those divisions.
As I've written many times I think the real success of the Switch may not be this current revision but a slightly smaller, more power efficient model that is a much better portable but still offers the same home console experience of the current model. I realise at the moment it looks like a big success and its hard to be critical of the current sku but I think longterm it's too expensive and bulky and a smaller revision will sort those issues out nicely. It's current 20nm fabrication process is too power hungry, heat generating and bulky. 14nm or better would help immensely with that, combined with a slightly smaller screen, 5hrs minimum playtime is possible, a more comfortable and usable figure for a portable.
