-Forced to sacrifice gpu power
-$100-$150 bundled accessory
-Be better at being Nintendo than Nintendo
-Use family games/casuals to secure the prized living room spot
-Make profits from accessory related software
Route to Kinect alternative
- Take a $300 Switch and remove the screen, the joycons, the internal memory, pretty much everything except the chipset and cartridge slot to get the cost as low as possible.
- Sell 10 million of these to MS at a profitable $100 a piece for a cool $1 billion. Throw in 10 million years of Nintendo Online to sweeten the deal.
- Put the chipset inside a special edition XSX/XSS and let it share the missing components it needs with the ones the XB already has. SSD/HDD, wifi, power, HDMI, XB controller etc.
- Sell limited edition N-XSS and N-XSX for an extra $50-$100 on top of the usual XB price (or just eat the $1 billion loss).
XSX+Switch Lite=$699, XSX+Switch=$799
-$75-$100 built-in accessory
-Not forced to sacrifice gpu power
-Be better at being Nintendo than Nintendo - making a Nintendo home console when Nintendo isn't (yet).
-Co-opt/attract casuals and/or traditional Nintendo gamers
-Use Nintendo to secure the prized living room spot
-Make no profits from accessory related software. While MS aimed to make lots of profit with Kinect 2, it had the opposite effect overall so making no profits from Switch software would be a better outcome than making losses with Kinect 2.0 software.
-tldr: license the Switch chipset for $100
It's not a Switch Pro/2. It's an XB that can switch to a Switch or a Switch than can switch to an XB.
Maybe they make a special edition X-Pro Controller if they can't agree which controller to ship it with or maybe MS allows Pro Controllers on XB.
The aim is to offer $200-$300 of value for an extra $0-$100 while keeping both sides happy. The cartridge slot means Nintendo still takes all the Switch money and MS still gets theirs. Nintendo has already done this once. By sharing every component (except dock) between their home and handheld systems they offered a ton of value. Not exactly the same as having two separate devices, but for most people the convenience trumps having 2 consoles.
Don't Play Stationary 4 ever. Switch!