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The recent news about Steam Deck lowest priced SKU being removed from the market means there is no handheld better or that has similar level specs to Switch 2 that cost the same or less than Switch 2. So that shows the reality of the handheld market, if you want a handheld that can play some AAA games like the Switch 2 can do, that means it can't hit a lower price point.

You could argue that Nintendo should have made a worse Switch 2, mostly capable of playing indie games and Nintendo games with a bit better resolution and fps, and given up on getting bigger third party releases like Resident Evil 9 on their consoles. That would have allowed the Switch 2 to hit a lower price point, but it would also have invited even more discussion about it being just a Switch pro, and we will never know if such a Switch 2 would have had more success or less success than the current Switch 2 is having.