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Yes.
Keep in mind N64 and GameCube were part of the graphics race but had quirks. N64's storage size for games was severely limited by cartridges. GameCube was somewhat limited by the miniDVD. I don't think Wii being around as powerful as a 360 and PS3 would've done enough if it didn't have the casual games. And even if it had the casual games, it would be an unnecessary cost.
And with the hybrid nature of Switch and Switch 2, you simply can't have them as powerful as Xbox and PlayStation.
We might win as gamers if Nintendo had powerful home consoles and handhelds, but it would not be the right business decision for Nintendo, I think. Nintendo would still have quirks the way they deal with third-parties and the better specs might not be enough to get almost all the multiplats the competition gets.



Lifetime Sales Predictions 

Switch: 161 million (was 73 million, then 96 million, then 113 million, then 125 million, then 144 million, then 151 million, then 156 million)

PS5: 122 million (was 105 million, then 115 million) Xbox Series X/S: 38 million (was 60 million, then 67 million, then 57 million. then 48 million. then 40 million)

Switch 2: 120 million (was 116 million)

PS4: 120 mil (was 100 then 130 million, then 122 million) Xbox One: 51 mil (was 50 then 55 mil)

3DS: 75.5 mil (was 73, then 77 million)

"Let go your earthly tether, enter the void, empty and become wind." - Guru Laghima