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My opinion is Nintendo should double down on what their current (Marketable) appeal is and then go from there. By that I mean the successor should be:

-About half as strong as whatever Sony makes next (Instead of 10x weaker)
-Be $300 at most (Aim for half the price of the competition)
-Come with just a gamepad
-Launch with a few great Nintendo Titles and one or two NEW hardcore titles
-Get their Network together and make it creative and special

Think about it. If they did that people would say "Well it is half as strong as the PS5, but it does have every other third party game and all of those great Nintendo titles for half the price." The family will love it!