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RolStoppable said:

Exaggerated and overdramatic.

Nintendo did not have only the Wii U during the previous generation, but also the 3DS. If Switch had failed in the home console market, Nintendo could have focused on their monopoly in the handheld market by releasing a cheaper hardware revision to salvage their business pretty easily, so Switch was never a case of make or break.

Despite a poor financial performance last generation, Nintendo had hardly touched their cash reserves to get through the rough times. Nintendo was not on the brink of reaching their end as a hardware manufacturer, because they had enough money for more than one try.

Reggie is a marketing guy first and foremost. The story of the phoenix rising from the ashes sounds amazing, but the reality wasn't even remotely as dire as he described.

I believe somewhere in the past that they said Nintendo has enough room in the bank to make 3 consecutive flops in a row before they consider dropping out of the home console market.