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Endymion said:

This line of reasoning never made sense, even in 2017.

The whole Switch was setup to maximize profitability (unique development environment instead of being split, push toward higher margin digital sales and additional revenue through cheap DLCs, online subscription bring in recurring revenue etc.).

Switch is going to sell less hardware and software than Wii+DS yet the Switch era is going to be much much more profitable than the Wii/DS era.

Pretty funny that the PS3 is now considered a decent success and the Wii U is considered as a huge failure. The losses that Sony made in 2007 alone were larger than a losses of Nintendo over the lifetime of the Wii U generation combined and it took until 2018 for Sony to make up for the losses they had in the PS3 generation.