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Operating Income/Profit is the ONLY thing that matters. At the end of the day, if they have more money in their bank account by selling less but also consolidating their teams down to cost effective sizes and reducing redundancies, it's a win. Selling 100 mil of one device and one set of teams you have to pay salaries to and advertise for is better than selling 250il devices where you have to pay double on everything due to different games/markets if they have more profit at the end of the year.

Nintendo has been building towards the long game (10+ years from now) while we all obsess over the short term game. They know what's coming. Consolidation and differentiation are the only things that will keep people buying their hardware when the legion that is Microsoft/Amazon/Apple/Google has their own cloud streaming platforms. Unless Sony drastically changed their model I don't know how their gaming division can survive ten years from now. Who will want to buy a box that can only play on a TV when they could cloud stream it? I'm not speaking about now but rather the 2030-2040's when cloud gaming will actually function properly.