"Red oceans represent all the industries in existence today – the known market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform their rivals to grab a greater share of product or service demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities or niche, and cutthroat competition turns the ocean bloody; hence, the term "red oceans".
Blue oceans, in contrast, denote all the industries not in existence today – the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored." - W. Chan Kim and Renée Mauborgne - Blue Ocean Strategy
If we consider that the red ocean in the gaming industry is the hardware power race, yes the Switch is an innovative product. The hybrid concept target a new and unexplored market that will give Nintendo an enormous profit on staying in it.
And that's what people who asks for Nintendo to make more powerful systems don't get. They don't want to enter in a saturated market with Sony and Microsoft. They are pretty good at the spot they are now and are making lots of money there without any competition.
Last edited by TH_Lis - on 23 December 2017