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I dont know about too far back, but Nintendo has never tailored to the core market lol. Core market here meaning being able to play uptodate AAA games that appeal to a large mass of people (Elden Ring, CoD, Baldurs Gate3, GTA6)

Nintendo fanboys will never admit it, but it all comes to margins. Nintendo likes to make a good 100-150 bucks per console sold; at a price point of around $300 so they can move many units. That formula just does not work with good hardware, so they give you downgraded hardware since they can count on their core fan base to support them and their own development studios to make games that are not graphically intensive.