Hmm, selling the 3DS at a loss for quite some time and selling the Wii U at a loss for a couple of years, small installed base on the home console front with a fairly low attach rate overall and no presence in mobile sector.
Selling fewer units than the combined 3DS+Wii U paired with a growing presence in mobile and decent profit margins on hardware combined with eventual heightened software output due to streamlining and combining libraries that causes higher attach rates and thus better profit margins.
Number two seems better to me, Nintendo's economical prospects are a lot better right now than they were ever during the rather loathsome 8th gen for them.
Bottom line; Switch doesn't need 80 million plus to be a success, depending on certain factors, I'd argue that even half that could be counted as a success, doubly so considering the market it competes in and its form factor that puts it dangerously close to the most dominant force the consumer electronics market has ever seen.
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