Western AAA devs are more likely to focus on PC
I believe if PS5 and XSX flops the most likely route for Sony and MS gamers is go PC gaming. Sure they can still using Switch, but I doubt they will stop playing all the IPs they like altogether.
So instead of PS4-Switch and XBONE-Switch ownership we will have PC-Switch ownership hence the same status we already have now
So what you are trying to say is that PC is (and probably will stay) the dominant platform, not the Switch.
Most of the AAA games, most of the AA games, most of the indie games, best backwards compatibility, almost every multiplatform game day one as PC version (and often the prettiest version), most versatile and flexible platform due to very different form factors and free choice of input devices.
I understood OP was talking only about console market, not the game market as a whole
If that's the point we need to include mobile as well, meaning all mediums will bleed customers to Nintendo. It's such a catastrophic scenario that I can't process, let alone predict
Meanwhile Nintendo outselling Sony and MS by large margin is easier to digest and is lowkey already happening
Fact is Nintendo can't absorb the whole console market to itself, if Sony and MS flop too much it will lead only to a PC gaming increase in their market share. Nintendo software and hardware sales will increase as well, but there is a threshold of how much.