They are making money, of course it makes sense.

Translation:

"I'm excited about the Switch because it uses our chips. I'm a smart businessman. So, I like anybody that buys our chips, and I like anything that they put them in"

"Partnering with Nintendo really makes sense for us. We make chips, and they buy them. It is really a perfect fit."

RSX was not last minuit.
https://www.extremetech.com/extreme/57390-sony-renews-nvidias-console-chip-contract

http://www.anandtech.com/show/1719/9

As you can see, there is a ton of information on the RSX chip, which means they would have likely had working RSX silicon in 2003 - 2004. It takes years to design and plan for these chips.
The GPU that RSX is derived from was already on the market in mid 2005.

The Playstation 3 didn't release untill late 2006/Early 2007 depending on region. So we already had RSX information several years before the console even launched. That's public information. Companies have internal plans that date back allot farther than that usually.

The Cell also lacks much of the vital components to... You know. Render graphics. Sony, IBM, Toshiba et' all would have known this. Their engineers aren't stupid idiots.
The Cell would have had all it's internal and external buses planned at an early stage to interface with DRAM, Chipsets and the GPU. You can't go back at the last minuit, whack a GPU in and call it a day. The Chipset/CPU needs to support it too.

Also. There are profits... And then there are nVidia/Intel/Apple profits. Half a billion dollars in royalties might be something nVidia could sneeze at... But AMD loves it. And that doesn't account for all the other extra fee's they get either.

Tegra has never been a high-profit part. Ever. Period. RSX was likely more profitable over the long term. Especially once all those pretty fee's started to accumulate over the decade.
In-fact. Tegra often looses nVidia money.
http://techreport.com/news/29288/nvidia-revenue-and-profits-rise-for-its-fiscal-q3
https://www.fool.com/investing/general/2015/09/14/when-will-nvidias-tegra-turn-profitable.aspx

not true about financial issues.......Wii U was already making profits a year or two ago, and with the move to mobile they been making a lot of profit which is where most of the advertising money come from, they made 5 million from fire emblem in 2 days, which probably paid for the 5 million super bowl time slot......and this is not counting how much they made from Super mario run, mitomo and etc....... they had profits it was not as huge as Wii and DS days but it was enough for them to keep on going without losing any money

That's something I don't get with people who make comments such as the one you quoted. Nintendo wasn't necessarily financially struggling. I associate struggling with losing money or something along that line. Sure, they weren't profiting as they used to in years past and they're not out of the woods yet, but they only made 2-3 years of losses this generation and started building some profit recently. And the losses weren't even like PS3-type losses, unless I missed something.

Looking at it's current sales, I don't think the majorty of people care about any of that.

Sure, I mean I have saved money for Switch and I am going to grab one later this year.

In case you dont know, I am a Nintendo fanboy. I defend Nintendo everytime when my friends talk shit about them.

But hey, I just hoped they put Tegra P1 in Switch.

Since porting to the system is much better than compared to the Wii U, it's definitely good for getting more ports on the Switch