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Having a balance between hardware lines is also something to be accounted for.

Having a hardware split of 65 million handhelds to 14 million consoles is not healthy.

The SNES-Game Boy splits where you had more like 49 million SNES and 50+ million Game Boys is a much healthier division of hardware. I'd much rather have the situation of the SNES + Game Boy than what Nintendo has today. 

Nintendo is basically a portable game maker these days (by market performance) and its reflective in the Switch's design.