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Just because it looks like a Switch doesn't mean that it competes with a Switch. If anything it competes with Xbox and PS5 because there is no handheld equivalent of those. In fact, you could say there is a big gap in portable gaming outside of Nintendo's target audience - the PSP was 10+ years ago.

As far as the Steam Deck is concerned, we'll have to see what Valve do with it. Even the subset of Steam games that are appropriate for the hardware is a huge library (I'm bored of the argument "23 games that I bought five years ago and don't play anymore won't work on it")... At some point Valve could hit gold with a console.