A Switch TV is fundamentally pointless: Switch 2 is designed with portability as priority; a Switch TV would only save the costs of the LCD panel, at the expense of the hybrid form factor (which I guess Switch Lite also sacrificed so not a priority perhaps for Nintendo). I guess they would have been able to put a beefier fan in there, and overclock the unit somewhat - for improved docked performance. But I am not sure that's where money is. Nintendo has already tried and failed at traditional consoles with Gamecube and Wii U, and the environment is very established with Playstation 5 today. Plus Japan is not interested in traditional consoles. It would be a niche product for a niche market. Switch 2 can do everything it can and more. A Switch Lite that is dockable, would be a much better proposition if it can become smaller in size, as Switch 2 is huge now for children's hands.

.Reduced and cheaper screen
.Reduced storage to 100Gb
.Maintain system dimensions
.Portable only (duh)
.No charger

Given that data suggests that ~20% of people used Switch 1 primarily docked (with ~30% as handheld and ~50% as both), I'd say there's enough people who might've wanted Switch TV, thus Switch 2 TV as well.

As for savings - no screen, battery, joycons (standard controller) and few other savings, which would account to BOM that's even lower than Switch 2 Lite...so easily $349 as price tag (at this moment).

I think they need to introduce 2 new products to weather the current and coming price storm:

1: A home console only Switch 2, not more powerful just cheaper by not having a battery and a screen etc.

2: Some kind of cloud hardware that just streams Nintendo games (if they can release something like that cheaper than any of their main hardware)

To weather the new market realities you need to introduce products that gives cheaper access for more consumers to your products, but these products need to be tied to your ecosystem, so no PC ports strategy or something like that, just offering consumers cheaper alternatives to access your games, which would work very well for Nintendo, because the main draw of their ecosystem is their own software, so they don't need to think about being cutting edge in any way, they can just offer people cheaper alternatives to play Pokemon, Mario, Zelda, Smash, Animal Crossing etc and people would go crazy for it.

Well if that is true, then there really is nothing to worry about— the ball is fully in Nintendo’s court. Whether they opt for profitable hardware at the risk of a stunted install base would be completely in their hands at that point.

But again this is assuming what you say is true. I’ll look into it.

I don't agree. Tiered expenses to capture the budget option (or entry level device), without giving up those that want the deluxe option, is reason enough. The lower manufacturing prices are just icing: the lack of a screen, battery, and other hybrid model exclusive components and heating concerns.

While the Wii U failed, it wasn't that people didn't demand Nintendo home consoles (the Wii literally sold 100M+ immediately prior): the Wii U had a design that wasn't well received or used by software developers and poor marketability for gamers with significant added load times over the Wii (going from 0.2 seconds to turn on to about 2 minutes); not to mention, the controller (which had an extra battery and screen) appeared to add considerably to the price → add these things, and the Wii U was both overpriced and under-supported, and lacking the sleekness of the Wii, DS Lite, and Switch. The Switch & Switch 2, in terms of support, are not only vastly superior to the Wii U, but they are superior to the Wii. If it's a niche market, it's a potentially very large niche, that could be in the tens of millions, many of whom could be buying in because of the cheaper price, or at least buying in earlier and thus purchasing more software for longer. While you count Nintendo out with the Wii U/Cube, the Wii proved to never count Nintendo out.

Also, Switch Lite has already proven that there is demand for form factors other than the hybrid model.

Game streaming with glorious 10 - 15 fps like the GameChat streaming?