Nintendo treats it like both, because it is both. Breath of the Wild or Mario Odyssey for example are far above the caliber of what people would consider portable games, but Pokemon Sword/Shield just seems like natural progression to what we saw on the 3DS.
If we are talking about strickly 3rd parties however, they are treating it as a portable that can handle console games. What reason is there for someone to choose the Switch version of Witcher 3, DOOM, MK11, Outer Worlds, Wolfenstein, etc other than the ease of playing it portable? It is literally the primary selling point. I mean sure some people only have a Switch and would only be able to get that version, but those sales are just a bonus TBH.
Nintendo Switch Friend Code: SW-5643-2927-1984
Animal Crossing NH Dream Address: DA-1078-9916-3261
