If this is real - which I think it easily could be - it's presumably come about in no small part thanks to Switch's performance in Japan. From Nintendo's perspective, Switch hasn't quite solved the problem of reconciling a portable-centric Japanese market with a home console-centric Western market. Switch is trending behind both 3DS and DS in Japan and that'll be cause for concern for Nintendo, even if Western sales are trending ahead of 3DS. Given their stated ambition to sell multiple Switches to individual households, a cheaper model aimed primarily at Japan, families and children (in the West) makes sense. Pokemon Let's Go has under-performed in Japan, too, which might be another reason why Nintendo are now accelerating plans for a cheaper, mini model. With portable hits like Pokemon gen 8 and Animal Crossing coming this year, then Nintendo will clearly want to maximise their sales potential and to drive hardware sales even higher.
In practical terms, a portable only Switch would be problematic, given that would remove the Switch's defining feature. A Switch model without removable controllers would also be problematic - especially given Nintendo seem set to give Labo another push in 2019; the modular nature of Switch is essential to something like Labo. That being said, I think the second option is more likely than the first. Any model like that could be kept compatible with the docks (which are already available separately) and existing joycons and pro controllers and could fill the criteria Nintendo will want to hit: cheaper, more appealing to the portable-centric Japanese market; an option for families and Switch-owning households worldwide. I think, on the latter point, a Switch Mini had better be compatible with existing docks - but if shrinking the form factor is one goal, is that something that can be achieved? Additionally, Nintendo could encourage more peripheral sales of docks, joycons etc to people who buy this cheaper model.
It's an interesting report and a hardware revision is certainly an increasingly likely possibility. Switch is marching on to the 40 million mark in 2019 and let's not forget - PS4 saw its two hardware revisions launch during the third year on the market. The easier move for now would be to slash the price of the existing model before Animal Crossing and Pokemon hit, but Nikkei do have form for this kind of scoop. It's certainly going to be an interesting 2019 for Nintendo.
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