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RolStoppable said:
The whole point of Switch was to consolidate Nintendo's first party efforts into a single platform, because a sufficient amount of game development for two separate platforms is incredibly hard to achieve nowadays. Your suggestion would split that up again which is detrimental for the health of Switch, so any profits you imagine for your hypothetical platform would very likely be offset by the decrease in profits from Switch.

Right now Nintendo doesn't only have the 3DS as a budget option, but also the SNES Mini and soon again the NES Mini. It's much more sensible for Nintendo to maintain Mini consoles as budget options because they don't demand a lot of development resources while at the same time they provide games of known value to customers.

Definitely a fair point regarding 1st party software which is why I suggested scaled down versions of Switch titles which wouldnt take the same development bandwidth as ground up software. Not to mention Nintendo could outsource development for their IPs, they've done it in the past.

 

Regarding SNES, NES minis, those have a ceiling for profit since they're only making money off hardware essentially.