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Pemalite said:

A Switch Lite does nothing that a standard one can't and does not open up any part of the market again. - Literally your argument, yet the Switch Lite exists.

Yes the lite allows people to buy their kids or family one in the same household, just like a theoretical Switch TV would, buy one for the kids bedrooms, lounge room, games room and more.
Clearly there is a market for a Switch TV considering the Playstation 4 sold 117~ million devices, which is a market for the Switch to target.

Sorry to use your argument against you, but the amount of flaws in your logic was pretty catastrophic.

The PS4 is not the Switch TV it's the PS4 different market and consumer approach for reference only traditional Nintendo console to hit 100m was the Wii meanwhile Nintendo's portables have hit 100m on three occasions and multiple unit households are a key reason for that. Yes the Switch does what the Lite does that's why the standard model is the best seller of the two by a significant margin but then the Lite is there purely to help that multi-unit household part of the market.

For a start the share feature Switch uses is more geared at multiple unit households as it's a modern version of what we've seen on the portables stretching back to the GBA with Four Swords, the Lite model plays into this via the points I highlighted earlier, you see this even in the marketing. Lite as a result retains more of the selling points than a static model because of the portable aspects as not only does it cater to multi-unit households better it can still provide mobile gaming and more aspects of what the Switch intended to bring again this is shown in marketing, how many adverts have we seen with groups of people gathered around with Switch units playing certain games.

The Lite model still retains that while opening up multi-unit households a static model doesn't to put it simply the Lite is more to supplement the hybrid model, to increase units in households where a Switch is already used it's not meant to replace it in what it does in any area that's why a static model is a bit pointless.

The logic is not as catastrophic as you think.