Nintendo own is no problem for performance of Switch, but a big problem for third parties. FF and Resident Evil are planed to release for PS5 and won't move to Switch because Switch doesn't have enough performance for their devs. At now, Nintendo has a big market, but it is unsteady as the Wii used to be. A next challenge for more big and stable market is taking in major franchises.
the switch is plently powerful enough if you know what you are doing...
but a lot of modern devs get by by brute forcing the issue instead of developing a creative way to design a game around a console's specs.