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Maybe direct competition for Switch will come via streaming service/devices?
A streaming device can do the same things a Switch does today, playing games everywhere, anytime.

Rumors says Sony and Microsoft will launch a streaming device along with Ps5 and Xbox4 and so Google with their Project-Stream that will be unveiled at GDC on March, 19.
All those 3 companies are about to share the gaming market from 2020/2021 offering the same games and similar services. Nintendo could do the same by producing a Switch Stream device that will release side by side with the next Switch 2 (this type of service already tested in Japan for games such as Resident Evil 7).

Basically, in the next gen we will have all the games on all formats (Nintendo console included), except for exclusive games, naturally.