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Switch could easily sell another 7m imo.
Nintendo just need to make sure they produce them, and then sell them at breakeven point or slight loss.

Like OP, I think the Marketing for hitting 160m, would be worth abit of a loss on hardware.
And again, these new adopters looking for a aged cheap system, might also at some point move on to the switch2 at some point.
It builds fan base, getting gaming into the hands of those least well off.