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SecondWar said:

Nintendo tried twice to beat Sony head on and failed badly. It also did not have the money Microsoft has to throw around so its blue ocean strategy is clearly a necessity.

Blue ocean strategy has been over for like 10+ years (chasing soccer moms/non-gamers). That's an even redder ocean these days as the Wii U/3DS found out the hard way because Apple and Android dominate that now and those two are far bigger than the Sony's of the world. 

Switch is just a natural melting of the Nintendo traditional home console + portable, which was always going to have to happen as the complexity of making games would have made two bespoke libraries of games impossible.