Microsoft and Nintendo sitting in the tree K-i-s-s-i-n-g!
First comes love. Then comes marriage.
Then comes baby in the baby carriage,
Sucking his thumb, Wetting his pants, Doing the hula, hula dance!

The tighter grip Nintendo has on their IPs, the better. 

This is not about selling games. In a lot of ways this is nothing to do with video games period. 

This is about the CLOUD and who is going to control it ... Microsoft, Apple, Amazon, or Google. This is bigger than video games, Microsoft doesn't give a shit (at the top end of the company) about console wars. They do care a lot about the cloud. 

The problem with GamerPass on PS4 for Sony is it undermines the old, traditional business model of consoles that Sony is reliant on. That's why they can't allow things like GamerPass or even EA Access. 

But if gaming goes streaming centric, Sony is in trouble. It's gonna be one of the big boys (MS, Apple, Amazon, or Google) that likely controls it. 

Nintendo isn't a charity or here to make people's lives better. They are a video game company that has a business model that works for them. 

If they were merely interested in just giving their games away to everyone, they'd have closed up shop after the Wii U and never make the Switch. 

Except they made the Switch and now have a massive success out of it. Their business model works for them. 

Microsoft's business model is different, they want to control the cloud, and have like 10 other divisions, something Nintendo has no aspiration to do. 

I don't think hardware specs are going to matter that much if they are going to stream games over for the Switch 

Having looked into the streaming situation a bit more this is very true MS are lining Nintendo up to be one of their major clients I can see them pitching cloud tech and offering server services for online to Nintendo. For MS this would mean the entire dedicated portable market would be a consistent userbase for them, Sony right now if all this comes into being would be banging their heads against a wall as it's not a traditional set up like they adept at dealing with, all of Sony's for lack of better words defeats to competition in the gaming space has come from non traditional situations, PSP, PS3 and Vita were beaten out by situations that are unorthodox.

I don't see gaming going fully streaming centric but I can see the streaming side of things becoming a feature for platforms like how online has and at some point Sony would either have to partner up or be forced to create their own.

The Cloud (hate this buzzword) isn't going to mean anything to gamers if the game offering available on it is mediocre.  And there is no one cloud to rule them all that all the companies are fighting over.  Each company has their own.  Yes, this even includes Sony.  It's what they use for PS Now.  It is only used for gaming, the thing we care about here, while others use theirs for other things.

And no, GamerPass won't be on the PS5 because it undermines the old, traditional business model.  It is redundant, because Sony has their own services that do the same thing.  There's little reason to have someone else's competing service put on their system.  Sony has done tons to move into the future, before the other 2.  PS Now and PS Vue are good examples of this.  Of course, all streaming is decades away, so right now they are just nice alternatives or companions to one another.

I would buy Rare Replay if they ported it to Switch.

Nontraditional situations? It seems an apology and bad analysis. Sony lost because the basic strategy has spoiled: it's the same always, fill the platform with all possible games. On the PSP lost because the Nintendo handheld market is much stronger than the console market counterpart. Nintendo prioritizes the handheld market, Sony does not. At Ps3, Sony's hubris( 500 dollars, second job?) plus Microsoft (online better than Sony) and Nintendo (market break, blue ocean and attempt to bring old players back) forces have captured part of the Sony market. Finally, in Psvita, once again, the Nintendo handheld market is always number one for the same, while Sony has abandoned the Vita. And the Ps Vita when it was released, did not present many exclusive qualities, as far as the multimedia part, as happened at the beginning of the PSP

would be amazing if true! chance to try some MS games from XboxOne