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The MSRP for the Switch models is still set at $199/$299/$349 but you can get them from Gamestop right now, for example, for $179/$259/$319. I see no problem with Nintendo lowering to those prices officially once Switch 2 releases... or even a full $50 lower from current MSRP across the board: $149/$249/$299.

A $249 red box Switch 1 with a free game download could exist quite nicely along side a $399 Switch 2, providing a sufficient price differentiation between the two. The former with a vast library of discounted titles, the latter with newly released $70 games.

Still plenty of shelf life left for Switch 1 if Nintendo plays its cards right.