* "failing to embrace new technology" is a meaningless statement. Embracing MP3 players didn't change the fact that virtually all music could be easily pirated. It's not the free market's place to solve the problem of crime, only strict prosecution can solve that.
* "Charging too much" only became a problem when piracy undermined the market.

The music industry's demise came about because of piracy after 2001.
The video industry began suffering the same fate a few years later, it has been down in total revenue year over year since 2004 in Europe and 2009 in the US.

The Console and mobile industries have avoided decline by avoiding piracy as much as possible: being more litigious and updating hardware, primarily.

Even in the 80's/90's before CD's became a thing, people complaining about the cost of an Album was a common occurrence.
As kids we used to make our own tapes by recording from the Radio... If the tapes weren't $30 AUD at the time and a more palatable $5... We would have probably bought significantly more.

False. The Music Industry's demise came about because they refused to change their business model to adapt to the new emerging demographics and consumption habits.

On the PC, piracy was a stupidly massive issue at one point... Then Steam happened, it not only made games more easily accessible thus driving the convenience factor, but they were cheaper and better supported.
The Music and Video industry's have fought that at every turn. Every. Single. Turn.

The Music industry's current situation is it's own fault.

Piracy has been in decline on the PC without excessive litigation and excessive updates to hardware though.

You are under the assumption here, though, that companies act on a 100% rational fashion, which is most certainly not the case. They don't, consumers also don't, and that's something economists (and shareholders as well) failed to take into account for centuries. So I don't think Nintendo's behaviour can be taken into account, specially where there's still a conflict on the validity of scientific data (how piracy affects sales or if, at all).

If hardware manufacturers don't want people cracking their systems, they should do a better job engineering their security.  The idea that someone should be legally barred from modifying a piece of hardware that they own is ridiculous. 

Of course, even if a law of this sort did exist, it would be totally unenforceable.  

A revision is coming later in year or next year anyways.

Don’t think Nintendo is worried.

It'll definitely become a problem for Nintendo, but it's not something damning for them. Hacking and piracy eventually becomes a thing in most gaming devices, like the DS, the Wii, and the PSP, which I recall being a particular issue with (My friend bought a PSP just for the modding). It's problematic and annoying, but it's nothing new at this point.

Exactly. You have no problem with stealing other people's inventions, which was one of the main things copyright law was intended to protect. This shows that you don't respect other people's hard work. You think, that it doesn't matter if somebody spent 30 years on a new invention, you have the right to steal their technology regardless. Same goes for a book that somebody took 5 years of sweat, blood, and tears to write. Or even a videogame. 

It's good for consumer , bad for game publisher and developer, and in between for Nintendo.

Pirating has wide variety affect on sales, there is no good and bad, it's jut it will not be very profitable. I am saying it will not very profitable it doesn't mean negative.

My concern are how gaming publisher and developer will react , especially small company like indies games, because indies are selling like hot cakes on switch. If their games are easily hackable they will lose income.

For Nintendo and big publisher i dont care they have their own strategy to counter that.

And also if Nintendo really care there might be new hardware revision sooner.

Trust me, the biggest consumer  in electronic are developing country , and they are the biggest country that support piracy.  And also There is no patch can help Switch for the moment, the problem is on the hardware fault and some of the component.

Well stated!!