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Yerm said:
outright admitting that they arent working on new hardware is a bad sign. it takes years to develop a console, and the PS5 and next Xbox could very well launch next year. if that happens, game devs arent going to care about the bottom line, the Switch is going to be left in the dust.

He didn't say that they aren't working on new hardware, only that the current Switch doesn't get replaced by a successor in the near future.

New hardware can (and probably will) happen in form of additional members of the Switch family which aren't replacing the hybrid console (f.e. a "Switch lite" handheld and a "Switch Home" TV console without battery/display) playing the same games.