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It would have flopped, or sold decently depending on how much Nintendo was willing to operate at loss to keep their market share
The biggest culprit is handhelds owners. Handheld owners are the true majoriry of Nintendo audience
250 USD is a steep price increase from DS owners. Remember 3DS was released in was 250 USD and Nintendo needed to cut the price quickly. The problem here is this system would be much more expensive than a 3DS to manufacture so either Nintendo would take a huge loss for years or they would be adamant in decrease the price resulting in millions of units lost
Slightly above 3DS graphics would not make console owners from Playstation, PC and Xbox to embrace this new handheld either. The lack of HD developed games like BOTW and Odyssey would hurt Nintendo a lot here. Most Wii U games would be even more uneventful if they were bound to have slightly above Game Cube level of graphics. For home console they would have kept the game Wii-like games as their system sellers would be their biggest disappointment
Wii owners love to brag about how fun was to play with motion controls but the truth is the audience for this kind of game faded quickly, as Xbone proved with their kinect
With the focus in Wii-like games and high price point throughout all its life I could see this selling in Xbone range at best
Otherwise, if Nintendo moved away from Wii-like games and investing in quality console games and decreasing the price of the console I could maybe see this selling as much as PS3
Either way, the existence of this console would have hurted Switch itself. As it would probably mean Switch was going to launch in 2019, much closer to PS5 and Series X. Without much time to have a breath of exclusivity in the market and not serving as an auxiliary device anymore. Plus it would be the first Nintendo system with HD games, hence most of Wii U games would only see the light in this system. Switch would have much more trouble passing beyond the 100 million mark
