Ok so it will succeed by being a handeld, and having all the handheld IPs. That for sure is something that Sony and Xbox are not doing anymore. 

Sadly. I hope Switch does well enough to make Sony rethink abandoning portables altogether.

It's portable, that makes it basically a different product class, just like 3DS isn't really a direct competitor for the PS4/XB1. 

So did anyone actually read else read the full thing and not just post based on the title? He talks about more than... y'know what's on the title.

I'm seeing a lot of people sarcasticlly pointing out he's obvious when he in essentially aware that he is pointing out the obvious

Nope that isn't the context:

"There's probably a handful of people that would really love to have a great Borderlands experience that you can have on a screen about that size, that you can carry around with you. But most of the people that want the kind of big stuff that we're doing are totally happy to do it on their television with their PlayStations and their Xboxes. And Nintendo's not going to win by trying to take people away from that. They're going to win by offering something that those guys can't offer, which is exactly what they're doing and should be doing. That's where they should dedicate their resources. And I think they're really smart for doing it, and it's kind of what I want from them as a gamer."

And that highlighted part, where does it mention what it actually is?

Obviously the context is that he likes nintendo handhelds.

"people that want the kind of big stuff that we're doing are totally happy to do it on their television with their PlayStations and their Xboxes. And Nintendo's not going to win by trying to take people away from that."

Nintendo will appeal to those that dont want to sit down and play infront of a tv.

tada! context.

The switch is a handheld, is what he thinks it offers that the playstation and xbox dont.

I don't like this guy. Think he's a bit of a c***. But this was a very smart, diplomatic set of comments.

This. The one and only selling point for all Switch buyers.

Honestly I do think take 2 can help with Nintendo systems sales if they participate deeply, but I guess they won't
He is right about something though, Nin needs to succeed where they are strong and that will make players buy their machines without the fear of it being a failure or less than expected
Having been a Nin fan for so long I enjoy their gaming experience, But they are not building many fans this way and that's the big issue they need to turn around

I was gonna use that part in my previous post, but decided not to bother. I then saw your post and then I posted the whole paragraph. I just forgot to unbolden it. Sorry for that confusion. 

The context however is software output not hardware. He discusses how Borderlands may not be a fit because despite having a screen of that size, it wouldn't gravitate much from the PS4 or XB1.

I do see how you may have thought that handhelds were the key point. But even then in the quote you put up, he complains about both Nintendo home console hardware and handheld hardware. If anything what you put up is more about a hybrid experience.