I can't see that being a problem.
The adaptation to HD will hurt some companies, but maybe not that many. Most companies have already years of HD development experience. The hurdle doesn't need to exist as before.
You will see a mix of game of all sort of budgets. There's nothing strange about that and i can't see why that will cause droughts.
Nintendo, by avoiding development for 2 separate systems, can use the team that develops 2 Marios, to make one and something else (the same for other Nintendo studios).
That being, Switch can have more games per year and even end his life with enough support - unlike other consoles like Wii U, for exemple.








