I think the current Switch will go down to $250 this fall and could go even further next year. So I don't think they need a new entire model to have a cheaper system.
That Tegra chip is likely already about as cheap as its ever going to get.
Switch 2 I'm pretty sure is actually what Nintendo's R&D is actually working on now. That will likely be the Tegra Xavier chip (which is basically Tegra X3).
They have Switch 16nm (smaller by cutting off bezels) and Switch XL (larger screen by replacing the dead space of the bezel with larger screen real estate) I think already finished right now, and yes with the Tegra X2.
They might tweak the aesthetics of it, but likely that will just sit on their R&D shelf for like the next 12-15 months before they greenlight it for mass production.
I think Nintendo will only rush to a dirt cheap model if sales of the Switch are poor going forward. If they're not, IMO Nintendo will get comfortable with a higher price point for the time being IMO. Once upon a time the "rule" for Nintendo portables was you could not release a portable over $99.99. That was it, that was the standard price for over 10 years. Then it changed with DS, and then it changed again with the XL models basically making $199.99 the new standard price point that most people buy.
I mean if Switch is selling well, then really is $250 w/a game bundled (quite possible by this fall even) really that different from the standard 3DS XL pricing of $199.99 without a game? Quite possible that $250 I could see becoming the new "standard" price. Inflation happens and Switch quite frankly offers a far more premium experience than old Nintendo portables, Nintendo is well within reason to say "hey you know $250 should be the new standard price, not $200". You couldn't exactly play DS on your TV (not that you'd want to anyway as it'd look so fugly).
