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Fight-the-Streets said:

Yeah, at this point, the only SKU left that makes sense is a TV-only model. The problem is that it would destroy the Switch concept. Sure, The Lite alreday destroyed that concept but at least it was still in line with the philospohy of "playing everywhere". But who knows, maybe a TV-only model could be tiny and be easily carried around. From the various surveys Nintendo made regarding the use of the Switch, i.e. portable-mode, TV-mode or both, the result was that not an insignificant percentage of people using the Switch mainly or even only in TV-mode. Surely, the result was noted by Nintendo and they are clever enough to make bank on it, i.e. releasing a budget TV-only model, still overprized as usual for a Nintendo product but nevertheless around the price of a Switch Lite.

The Wii had several revisions like the Wii Family Edition, Wii Mini, etc. Each iterations was cheaper than the last, but would continually cut features. I'm not sure what could be cut beyond the Switch Lite to get costs down...would a "digital only" Extra Lite system be possible? Charge $150 and that thing would practically fly off store shelves.