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I think after the wiiU, Nintendo realized their market is in the portability area rather than dedicated home consoles. Sure, Nintendo could make a competitor to the ps/xbox but then they'd always need to compete with Sony and MS with the latest console tech and exclusive deals. I don't think Nintendo wants to do that because it is not their forte.

So Nintendo's solution is to succeed in a market they have always been great at and where others continue to not keep up which is handhelds. But they also realized that they do still need a number of third party games to fill in the droughts. So with the Switch, they got third party developer input and mixed it in with their own specialties (for better or for worse) and that is how we got the Switch.

Now of course, due to the differences between the x1/ps4 vs the switch, it won't get a lot of the western third party games but, at least for this generation, it doesn't need to. It just needs to give a different enough experience with different enough games for the Switch to be considered as a secondary (or primary) gaming device and they are doing just that.

The downside is of course the risk involved. If they somehow screw up with the next generation like they did with the wiiU, they no longer have a carry device. But if they do what they are doing with the Switch, I think they will be good. It is always great to have more third party games but if it means competing with MS/Sony, then I doubt Nintendo will do it.



                  

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