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I think they will drop the price of the system in late 2017. They sold the Wii U at a loss and I guess they are really conscious to not let that happen again - this is their only system after all, no second product to cover the losses this time.

As for your question: I don't think so. I think the Switch will be very successful in the long run because Nintendo will push this thing like crazy. They did the same with the 3DS when it didn't sell well at first (and Sony did it with the PS3) and they won't let it die like they did with the Wii U (and Sony with the Vita). But sales in the first year will be moderate. Then in late 2017 there will be a price drop and an avalanche of first party games and sales will go up a lot.