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Yeah, we got so spoiled by high sales numbers. Below 10mil consoles shipped in a year is totally fine. Below 5mil is ok too. Maybe the Wii U didn't perform so badly after all.

/S

This fiscal year the Switch will ship below 15mil units and next fiscal year it'll be at brst at 10mil if there's no new console.
Stretch it to early 2026 would be business suicide. The hardware would be barely moving units at that point and software sales would be declining too. Software sales are already declining. There are still more system sellers that they can bring to Switch like Tomodachi and a new DK platformer or new 2D Mario platformer but with such an old console they're not going to move the needle much this late.
Third parties will have a significantly harder time brining their games to Switch. A Switch 2 would get much more support and thus more revenue and profit for Nintendo.

They definitely have a bunch of big games like a 3D Mario game in development and those would be better suited to release on the next gen Switch next year. Not in 2-3 years.

Shuntaro Furukawa very clearly said that a smooth generational transition and transitioning the current userbase and ecosystem over to the next console is vital. Waiting for that long would literally just be waiting for everyone to eventually leave.

It does not matter in any way wether anyone could consider that next console gen 10 or gen whatever. They don't care and that doesn't have anything to do with actual business.

They've been working on concepts for this next console since shortly after the Switch launched. They always work on new ideas.