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Pyro as Bill said:

I took the hh market being a blue ocean to mean an untapped/new blue ocean like with Wii/DS as opposed to blue ocean because everybody else is dead. It's not like it was with Wii/DS where the expanded audience BO wasn't being served at all.

Speaking of which, I don't think Switch is getting to 120m+ without them. 1,2 Switch looks like what you would get if you tried to make Wii Sports for a portable/tabletop device given that motion control can't really work on a small screen, especially multiplayer. ARMS looks like it could fall into the same motion-core bracket that Mario Kart does. If they can't make a Switch Sports launch game, ARMS plus Mario Kart w/wheel plus 1,2 Switch is nothing to sneeze at from the 'cazualz' pov.

I explained in the OP that the handheld market is turning blue entirely due to circumstance, not because Nintendo figured out anything special.

Switch's game library is in its infancy, so the option to make something like Switch Sports is still open. It's possible that Nintendo is deliberately saving it for later to avoid a perception among third party developers that is similar to Wii, a console that was brushed off as a casual machine devoid of an audience that would buy real games.

Eric2048 said:

so why is playstation 4 currently #1? why were PS1 and PS2 #1 in consoles?

Nothing in the OP contradicts your questions. From Nintendo's context, which is what is being discussed here, it's not possible to become number one by doing the same as PlayStation. That's why they need to take risks if they aren't content with being second or third.

Legend11 correctly predicted that GTA IV (360+PS3) would outsell SSBB. I was wrong.

A Biased Review Reloaded / Open Your Eyes / Switch Shipments