Switch will hit saturation well before the next round of PS/Xbox systems come out. They'd still have great software sales but terrible hardware sales by like 2026-2028. And there is no reason to. Switch, being a portable with near-console abilities, is best coming out mid-gen compared to the other systems so it can use better tech to be able to play games within reach of the current gen home console. If it a Switch 2 came out alongside the next round of home consoles it would have no chance to play any of those multiplat games made for the other systems. A Switch 2 coming out mid current gen (2024), like the Switch did in 2017, means it can use newer tech to be close enough to the current crop of home systems to play multiplat games that are made for those systems.
So it'd be a doubly bad business decision to let Switch hardware sales die off for years while also releasing Switch 2 alongside new home consoles so that it can't take advantage of better tech compared to current home consoles. Also people would rather be playing new Nintendo games in a few years with vastly updated hardware rather than the same level of hardware that previous iterations of their IP had 8-10 years earlier.
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