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DonFerrari said:

What I think is that MS is having a hard time against Sony on console in all generations even after having all this experience, how would they hope to compete with Nintendo on their first try?

Its not about competing with Switch, its about offering a mobile device to fill a gap in their product lineup.  If you are going to get a Series S for whatever reason having it also as a mobile device probably could seal the deal better and improve sales of the device.