I would like to see Nintendo do something like this further down the line. Right now I think it's important to fully establish the hybrid console. However, in a couple year I'd like to see them come out with a much more powerful set top box version of the Switch. They should use a day and date version of Nvidia Tegra and won't have to worry about battery life ect so they can overclock that. Allow games to run in 4k or close to it using dynamic resolution and allow for games to be patched for other graphical options as well.
From a marketing perspective undercutting the price of the switch wouldn't be wise. They should wait and come out with some more high end and more expensive. A core niche audience. Rather than undercutting because right now you want to have a lot of hybrids out there for word of mouth because that's the system that's going find a broad audience.
