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Soundwave said:

I think Sony is kinda fine with the "equlibrium" of the market as it were. Switch is not a competitor for the Playstation and I think Sony is fine with Nintendo staying on that side of the playground while they get their side of the playground. 

We're already at that bullet point where Nintendo is not directly competing with MSony? I have gone back and forth on that concept with both Wii and WiiU and in the end, I think you have to consider them as direct competitors still. They are all fundamentally game consoles and there are folks who will not own more than one. Granted, I think that segment is getting to be less and less over time but if NS has all the same 3rd party games and of course its own truly exclusive Nintendo IPs, there will be a larger number of people who wont' consider it a second console, but their sole console.

Jan/Feb 2017 will be interesting to see how 3rd parties support NS and that will define if they should be considered direct competitors or not. I'm betting Sony always considers Nitnendo a direct competitor (in gaming) regardless.