I don't think Nintendo are in the position anymore to compete with PS and Xbox in that market segment, that was proven already during the Gamecube era. Nintendo was forced out on competing on power, and was forced into pivoting to Wii to survive in the console space. Those that care about graphics the most will never shift away from their PC, PS and Xbox into a Nintendo home console.
The Gamecube was a capable machine with better specs than PS2, and it was a totally uninteresting product for anyone but hardcore Nintendo fans. It was also ignored by third parties who only cared about PS and Xbox, the same would happen with a new Nintendo home console.







