First, Nikkei revealed that Nintendo is making a smaller and cheaper model (nicknamed Nintendo Switch Mini) of the Nintendo Switch, scheduled to launch sometime in mid 2019. Nikkei says this information comes from suppliers and game development companies who were informed by Nintendo about the plans.

Although Nintendo has declined to comment, a person familiar with the plans says the Switch Mini will be “easier to carry out” and will “broaden the install base”. However, it will lack certain features.

Nikkei has gotten certain things right in the past, such as the Nintendo DSi and Nintendo 3DS XL, so we will have to take their report a little seriously.

https://nintendosoup.com/nikkei-nintendo-switch-mini-launches-in-mid-2019-new-service-aimed-at-large-microtransaction-spenders-in-the-works/

very  interesting details. I'm a bit skeptical of the feasibility for Nintendo offer a cheaper Switch mini, but it will be interesting to see what happen. I also don't like the sound of the microtransaction thing.

Update:

seems the part about microtransactions was mistranslated so I've removed it

Machine translation chews it up, but the key bit is the オンラインサービスの強化 which means "The strengthening of Nintendo Switch Online." They then go on to mention that in 2019 a new service will be added for gaming enthusiasts. https://t.co/rRd6VnOqpK

— Steve Bowling (@SteveMBowling) January 31, 2019

The translation from the Nikkei article actually indicates (based on how I'm reading it) as Nintendo Switch Online will be strengthened by adding new services aimed at pleasing core gamers.https://t.co/mckGx8vy1w

— Steve Bowling (@SteveMBowling) January 31, 2019

Pokemon and Animal Crossing are coming this year. Of course there will be a smaller, cheaper Switch.

— Imran Khan (@imranzomg) January 31, 2019

I was saying that long time ago, smaller and cheaper Switch revision makes most sense this year, especially when 3DS will be dead this year.

If this new model launches in August/September, sales will explode worldwide, especially in Japan

"The company said that ‘couldn’t comment’ on their plans for the product, but has informed multiple suppliers and game development companies that they intend to release them as early as 2019. According to their affiliates, they are ‘miniaturizing the console with portability and playing outdoors in mind, as well as cutting features to reduce the price and expand the userbase.'

https://nintendoeverything.com/rumor-nikkei-claims-smaller-switch-is-coming-nintendo-planning-new-service-for-this-year/

I don't know how to feel about this rumored mini revision because, like many have stated before, it has the potential to confuse and ruin the Switch's branding if it's executed incorrectly...which Nintendo has a history of doing.  On the plus side, they'd easily be able to drop the Switch's entry price to handheld levels if they did this, which would push yearly sales estimates to >20m per year for the next 2-3 years as long as Nintendo keeps on supporting the Switch with big games.  If this is real, I expect it to be released at the same time as Animal Crossing.

Also, it looks like they saw Fortnite's success and said "I want in".

Nikkei has more credibility than the average outlet, but they too have gotten things wrong.

One feature that a Switch Mini could lack are Joy-Cons because they lock the height of the console at a certain level. Switch can be much more Mini without Joy-Cons. That, however, doesn't mean a handheld-only SKU because the ability to dock doesn't need to be scratched - and it would be stupid to scratch it, considering the console's name. Of course the Mini SKU would have its own dock design that can be purchased separately, just like additional controllers for TV use. Essentially, an optional upgrade path for an SKU that focuses on making Switch a one-per-person device.

The service sounds like something that specializes in certain games that only certain gamers would be interested in in the first place, so it's unlikely to be something intrusive and will rather be a side project that most Switch owners will find easy to ignore.

I swim everyday in a pool packfull of rumors.

Also, it seems the 2nd part of the rumor was mistranslated ... it should be more along those lines :

The translation from the Nikkei article actually indicates (based on how I'm reading it) as Nintendo Switch Online will be strengthened by adding new services aimed at pleasing core gamers.https://t.co/mckGx8vy1w

— Steve Bowling (@SteveMBowling) January 31, 2019

Which correlates with the release of the SNES librairy on the NSW Online app. Nothing about microtransaction from what he read, which means Nintendo Everything/Soup butchered the translation once again !

Machine translation chews it up, but the key bit is the オンラインサービスの強化 which means "The strengthening of Nintendo Switch Online." They then go on to mention that in 2019 a new service will be added for gaming enthusiasts. https://t.co/rRd6VnOqpK

— Steve Bowling (@SteveMBowling) January 31, 2019

This is what I've thought of, too. Especially because the New 3DS XL didn't even come with a charger. I think the dock is probably expendable, along with a little height. 

I'll add that to the OP