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Soundwave said:

They can release a smaller version, but IMO it won't sell better. Just like the smaller 3DS models do not sell better, or the smaller iPhone that flopped isn't selling better, or that PSP Go that was smaller didn't sell better. 

When people try out both side by side, the bigger version almost always IMO gets the better response, especially with gaming hardware. It's just not worth it to most people.

IMO, Nintendo will not release a version of Switch without Joycon support either. It's a money-magnet for them to have people buying Joycons over and over again and beyond that I believe they have games in development that work with specific Joycons that they plan to sell in the future. 

Bigger ain't always better or more popular. Sometimes there is a sweetspot.

iPhone 6/6S/7 sold better than iPhone 6/6S/7 Plus, the middle-sized 9.7''-iPad sells better than the 7.0'' and 12.9''-models.

I would prefer a better pocketable handheld with 200 - 300 g weight instead of the current Switch with almost 400 g.