Was Nintendo right to opt out of the graphics arms race?

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A lot of this feels like speculation; we don't know for instance that this early NX concept was ever seriously considered or favoured by Iwata, Nintendo famously conceptualizes a ton of stuff that never comes close to being actually made.

The implication here that Iwata wanted a weaker Wii U esque Switch and that Kirishima came along and masterminded the Switch that we got sounds like fanfiction to me, as I've never seen any serious source for such a notion.

Seems honestly a bit gross to imply that under Iwata Switch would have flopped when the man spent his last dying days helping pave the way for the system.