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Well, Nintendo has subtly commented on an upcoming new version of Nintendo Switch that will be purchased by traditionally Nintendo handheld gamers.

http://time.com/4661055/nintendo-switch-interview/?iid=sr-link8

Takahashi said:
…“It is Nintendo Switch, so maybe we’ll switch it up!” jokes Takahashi, responding to a question about whether Switch’s life cycle will resemble more the company’s TV consoles (completely new ideas at five-year-plus intervals) or its handhelds (subtler changes every few years). “Certainly, we’ve designed Nintendo Switch in a way that it can be used by consumers in the way that best suits them. I think we may see that people who have bought a Nintendo home console in the past traditionally, they may treat Switch like a home console and buy it and use it for a long period of time.”


“Whereas people who have been traditionally Nintendo handheld gamers, they may buy Nintendo Switch and then for example, if a new version were to come out later, then maybe they would decide to upgrade to that…

This comment also indicates that the OG Nintendo Switch is their current hardware plan for targeting home console gamers, where as this hinted at remodel of Nintendo Switch focuses on targeting their traditional handheld gamer base.

The areas where that focus can be better served are by making the Nintendo Switch more pocketable, lower priced, with better battery life and/or not require active cooling. (i.e. Nintendo Switch Mini or Nintendo Switch SP)

That is certainly the direction that Nintendo seems to be focused on right now. Nintendo knows that the 3DS will fade as Nintendo Switch grows, and they need to fill that lower price entry point to expand the platform significantly.

People hoping for some powered up SKU that has a bunch of games the original Nintendo Switch cannot run have not paid attention to Nintendo’s history with said revisions.

Anytime Nintendo has made such SKUs (i.e. DSi and New 3DS) they have allowed developers to make games for them that do not run on the original models, and the amount of total software that actually forgoes the existing user base has been very very very few titles. It just does not make sense for the financial side of things for developers to cater to a less than half portion of the install base, rather than the whole install base.

Will Nintendo make Nintendo Switch models with newer and better SOCs? Probably so, but the performance benefit will be marginal to non existent at best, as the focus will be to reduce cost of the total cost of materials (i.e. a 7nm SOC would allow them to put a smaller battery, reduce the entire chassis size, and remove the active cooling).

Nintendo is not focused on upgrading resolution of their consoles. They are still selling a 240p handheld console in 2018 at reduced costs with a very healthy profit margin on hardware and will continue that focus in the future.

In 2023, the Nintendo Switch will still have a 720p screen and Nintendo will be happy with the low cost and high profit margin and will have multiple SKUs.

Nintendo's focus is it leverage its software library to sell its hardware, and to reduce costs of hardware while addressing a wider audience. Focusing on CPU and GPU power and splitting their user base and pushing upmarket leading to a fragmented library is not where they will expand and Nintendo knows this.

Nintendo Switch will compete against the PS5 and Xbox 4 by going for reduced costs and novelty SKUs, while continuing to release new games for many many years.

Sure, a Nintendo Switch 2 (the Switch's true sucessor) with games not compatible with the OG Nintendo Switch will eventually release, but Nintendo is in no rush. Kimishima even mentioned they want to have 7-10 years between the Nintendo Switch's launch and the launch of its sucessor, so the intention and plans are currently facing that trajectory.

By the time PS5 and Xbox 4 come out, Nintendo Switch will have a large active userbase that will be differentiated enough from PS5 and Xbox 4 that it will not effect the Nintendo Switch's momentum.