Switch isn't a traditional home console 

Nintendo certainly could attempt it, but at least at this point they have no motivation to do so. If you compare Sony and Nintendo's 2017 Investor reports, Nintendo made more profit before taxes than the Sony game division last year (202 Billion Yen vs. 177.5 Billion Yen). So while the consensus among gamers is that Sony is "winning," Nintendo made more money last year, so why would they change?

References
https://www.sony.net/SonyInfo/IR/library/presen/er/17q4_sonypre.pdf (Page 3)
https://www.nintendo.co.jp/ir/pdf/2018/180426e.pdf (Page 8)

Yes, if they make it comparable to PS/Xbox in performance and do some image rebranding - I think there are enough people out there who would love to buy console that has both Nintendo and all AAA 3rd party games.

Yes, they CAN if that's what you meant OP cause going by past history they already did it especially with the Wii/NES and arguably to a lesser extent with the SNES as well ...

The question you should be asking OP is if they can do it again in a hypothetical future ?

My answer to that would be that they have an extremely slim chance of that happening in the future where we only have maybe 2 console generations left if at even that ? (I wouldn't be surprised if the next generation was our last one either for quite a while with just another refresh) People say that the Switch is a "consolidation" of Nintendo's efforts into a unified hybrid platform but this explanation ignores the most obvious overall trend of their franchises being transformed into being handheld centric! Animal Crossing, Metroid Prime, 3D Mario all once built exclusively for home console systems but now they release exclusively on a portable system no less at that! Donkey Kong, Mario Kart, Smash Bros and Zelda all used to be exclusively released on Nintendo home systems but now they get released on their portable systems either as a late port or even simultaneously ... (Pokemon, it's mainline franchise has never touched home consoles!)

Their Switch system is not a "consolidation" of their handheld or home console efforts, it is simply just the last step in their "transformation" of their home console efforts INTO their portable console efforts and it was only a matter of when since they've consistently kept failing to gain traction for their home consoles in the past 3/4 generations but they just suddenly decided that the time is now to act on this arguably long term vision of their's ...

It's more clear to Nintendo than most out there that they can't compete on the virtue of a system without having being designed to be portable first and neither do they want to either when they look at Microsoft becoming a distant second to Sony so even they don't believe that their 1st party exclusives are enough to overcome Sony's dominance in the home console arena with it's own strong 1st party support and far more stable 3rd party support too ... (it's the harsh reality that Nintendo has to face that they might not even come out on top if they gave in all their effort so they took the easy way out in cowardice)

Guess the 100 million Wii, 150+ million DS, 70+ million 3DS, and 80 million GBA owners are suddenly gone from the faces of the Earth.

We must have also lost those 61 million people who once had an NES or those 49 million who once had an SNES too

First of all the thread is about traditional home consoles, none of these other then the NES and SNES are that, and that was back in the 90s.

Second of all, it doesn't mean that their are 100 million Nintendo fans out there, just like they aren't 100 million Sony fans.

Just look at the sales at the Wii-U, a console that only Nintendo fans would want to get. 

Oh yes, they can. Nintendo has the strongest 1st party games in history and the most system selling power than any company. The Switch is a huge success and 80% of its software sales belong to Nintendo. Nintendo is totally responsible for that success. When Nintendo makes games that can sell no one can really compete with them.

Thing is that Nintendo won't just make a PC-power box like the other 2 console manufacturers. Thing is that Nintendo does not have the capital to lose billions of dollars like the other two. They rather just do something different and beat Sony and Microsoft. This is also much more profitable. One of the reasons why we don't see real gaming companies making consoles anymore is due to the big media companies willing to lose billions. Sega's constant losses during the Dreamcast and Saturn days were chump change compared to what Sony and Microsoft will do.

It depends on how they handle it. If it was a traditional home console with similar specs to the competition and home entertainment capabilities, they’d probably crush the other companies. The only things holding them back now are third-Party support, traditional controllers and streaming/online capabilities.

If the console was underpowered and had difficult controllers, it would do even worse than the Wii U.

Wii, DS, and 3DS say hi. These 3 in general were kept afloat and relevant because of Nintendo. Do you know how many copies of MKWii were sold? 35M, New Super Mario Bros. Wii sold 30 million as well. And while yes, those were on the Wii, they still were Nintendo games. Xbox doesn't have that many exclusives, so I don't know why you're bringing them up, lol. Nintendo is fine with exclusives, and Japanese 3rd party support. Those things almost ALWAYS carry a Nintendo console and are constantly the best selling games on Nintendo devices.

You don't see western games sell well on Nintendo platforms, this is how it has always been. If you don't believe me, go and look at the top 10 selling games on any Nintendo platform. It's either made by Nintendo, or made by a Japanese 3rd Party (Capcom, Konami, Sega, Square, Enix (Now Square Enix) Level 5, koei, Bandai Namco, etc. And while yes, even some of those companies don't support Nintendo like they used to, they still sell well on Nintendo platforms when they show up.

Nintendo is good on their first party exclusives. Most of them sell very well, and all the profit goes back into their own pockets. I mean you have Mario, Zelda, Pokemon, Mario's RPG Line, Mario Kart, Luigi's Mansion, Pikmin, Yoshi, Kirby, Fire Emblem, Metroid, Donkey Kong, Kid Icarus, Splatoon, Arms, Xenoblade, and so on, and each of these games at least sell 1 million units which adds up and ultimately makes sure Nintendo is able to compete on some sort of level. Nintendo consoles need to first and foremost make killer software and they can do that. But as I said, if they made another black box, it'd be beneficial for 3rd parties but I'd rather them go the Nintendo Switch route as we already have 2 similar boxes on the market.

You ask, how can they compare to others when the answer is happening right now, just look at the Switch. It's going to outsell the Xbox One, easy. They're competing quite well, and even Sony admitted they can't ignore the Switch. Nintendo can hold their own. And if they fail, they fail. What company doesn't? It matters how you get up.

I think next gen they may give it a crack. They probably won't get to the same level as PS5 but that is because they will want to maintain the one hardware for portability and home console.

They got the supplementary unit patent which by the time the next console is due to come out Thunderbolt 4 will probably be out which supposedly will be fast enough to run a decent gpu externally.

They can still have their portable console and connect it to the unit for the hardcore gamer.

They question is how far advanced will the portable part need to be in order for developers to scale down a game in portability mode?