This is actually a tough question. IMO I do not think the Switch should fail because its concept is actually great! Saves the consumer money from buying both a home console and a handheld. Also saves them money from having to buy twice as many games. It will also have at least around twice as many games as the Wii U due to the combination of Nintendo's resources. Third parties also look to be on board. It has also been really well received, therefore I do not think it will fail.
If it does though, it does not mean Nintendo will simply exit the console market. Nintendo makes hundreds of millions of dollars on software alone so that can result in them having a profit on the whole Nintendo Switch cycle. That can keep the company generating enough profit to maintain its console business.
If they are putting every last bit of their resources into this and it fails both hardware and software wise, then yeah it will be the end most likely.
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