1. It's obviously cheaper to make one system than two. Also Nintendo only has to do R&D for one future system which brings down operating costs a bit.
2. Other than the failed Wii U, the Switch is Nintendo's most expensive system ever. And the original Switch still hasn't had a price cut over 3 years in which means they are likely making a ton on every Switch sold.
3. Switch full price games cost $60, whereas games during the GC/Wii gens were $50, and games on handheld systems were usually what like $30 or $40?
4. Digital games are sold these days, which means zero production and shipping costs on those, therefore higher profit.
5. Software sales on first party Nintendo titles are nothing like the company has ever seen before, when combined with the previous two points this means more revenue and more profit.
6. New income streams: Nintendo charges for its Online subscription and they sell DLC. Back in GBA/GC games nothing like these existed.
All these things lead to higher revenue and higher profit margins.
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