I mostly agree, but $300 USD isn't what I would consider keeping the costs down.. :/

That is just Nintendo trying to milk 3DS sales. As soon the 3DS winds down sales-wise Nintendo is going to transition fully to the Switch. We already see cross-support for the two platforms with Dragon Quest XI, Shin Megami Tensei V, and what would've been 3DS exclusives like Project Octopath instead being developed for the Switch. There is no point in the concept of the Switch if it doesn't also replace the 3DS. The 3DS is not immortal, just like the NDS and GBA weren't despite Nintendo continuing support after their successors released. There is no real difference between the 3DS and the Switch, besides the Switch being able to support AAA games as well. The Switch will inherit the Japanese middleware from the 3DS and Vita, and Nintendo AAA from the Wii U. All platforms have indie games. 

I'm talking about what big companies try to do and how gamers tend to behave. Indies are not the new middleware, only in some occasions can count like that, most of the times are extremelly low budget games with some notable exceptions, seems like there is only place for little independent studios doing creative but very low budget games or big studios making extremelly expensive but generic games.

This actually has a lot to do with the spectacular lack of creativity or inspiration on AAA games nowadays, so it does affects him even if he doesnt care about the poor devs.

So, I'm going to quote you here for a second.

"There is only AAA and indie, nothing in between. "

I listed roughly half a dozen games off the top of my head that fall in-between indie and AAA.

You responded by saying "no no those don't count, because blah blah blah" and then used review scores and sales to define whether these games existed or not.

Here's a few upcoming games just for good measure.

Guilty Gear XRD 2, Neir: Automata, Yooka-Laylee, Vampyr, Lords of the Fallen 2, .

I could keep going if you'd like.

AA and A games still come out and are quite prevelant.

I didn't say those games didn't count (at least not all of them, two of the titles you listed were part of quite big multi-media franchises.) I said those games weren't successful, which means there is very little incentive to produce more of them. And of course I did not literally mean there weren't any attempts at successful middleware, just that compared to the hundreds of games released in a generation, they are quite few and more often than not - unsucessful. Compare the budgets of games released in the PS2 era to those released today. You'll find a much wider and fuller range. Because you can find a few select titles (which fail anyway) does not mean there isn't a large trend toward games either being small kickstarter projects funded by fans or AAA titles with microtransactions.  The only place middleware has found a home where it can get by is on handhelds, and that is because people have lower expectations when it comes to asset quality for handheld games. There is a reason why Japanese third parties have transitioned to handhelds, and it isn't just because of consumer trends. 

Actually, before even that.  The NES launched at the same time as Sega's first console but it blew it away in terms of graphics and processing power, which gave it an unbeatable advantage.  

The Nintendo empire was founded by using the graphical arms race to their advantage.

Yeah that was the thing Yamauchi always made sure happened with consoles. I miss him.

Not necessarily, but it does allow publishers to refocuse their priorities toward new ideas. The Nintendo DS, Nintendo 3DS, PSP, PS VITA, and PC are the platforms I personally feel have/had the most innovative games in the largest numbers for the last two generations. Why? Because you can't get sales based on pretty assets alone. A game like The Order 1886 which was only popular because of its high production asset quality and aesthetics would never exist on these platforms (besides PC: see Crysis.) The power constraints just don't allow it. 

I believe PC is the leader in innovative software because it offers both graphical hardware and user interface advancements. I wish home consoles could provide both but since I have a PC that already does both and with home console hardware I have to chose between the two, I will always pick the advancements in user interface. That is why I tend to buy into Nintendo because they offer exactly what I want in gaming advancements.