OTBWY said:
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The Switch isn't directly competing with the PlayStation or Xbox, so yes it won't be directly competing with Scarlett/PS5 either. Though that doesn't necessary mean the PS5/Scarlett won't cause a reduction in third party support for the Switch. They just won't cause a reduction in sales of the Switch, because the success of the Switch, like any Nintendo Console, is not reliant on third party software.
They are not direct competitors because the success of one does not impact the success of another. Unlike PlayStation/Xbox. No matter how well the PS5/Scarlett do, the Switch will still be doing great. The Switch entering the market with a hugely successful launch year had no impact on sales of the PS4, and PS5 if it has a very succesful launch will not be detrimental to the Switch either.