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I know some folks will celebrate this and others will mourn this, but listen: Nintendo is making the right choice with under-powered hardware. PS4/XOne level tech would be a mistake because 1) it would bump up manufacturing costs which would in turn make the Switch more expensive to the consumers (as Nintendo doesn't have the non-gaming revenue to offset selling at a loss); 2) Nintendo's first parties don't require the extra horsepower for their games and the fans don't either (the sales of SD games on Wii, DS, and 3DS prove as much); and 3) Nintendo doesn't need the Arkham Knights and Battlefields of the world to succeed. A steady supply of Nintendo software output, guaranteed by the merger of console and handheld development, and the same third party support that defined the DS and 3DS will do the trick.

I know a lot of folks think prestigious titles like Grand Theft Auto and Call of Duty (and thus the hardware needed to support them) are required for a successful console, but Nintendo has proven that theory wrong. Better for Nintendo to remain self-sufficient than to adopt a design philosophy that would throw it into a self-destructive arms race with Sony and Microsoft, which have the deep pockets to subsidize expensive hardware and, frankly, need third parties much more desperately than Nintendo.