If I assume a final total of about 110m it should get there eventually though things are too up in the air to pick a specific year. Depending on how bad things get Switch 2 sales could slow down a lot but it being the cheapest relevant platform will help it.

As soon as possible to make a huge hit with Sony fault decision.

The Switch 2 has less storage and RAM than the PS5 and much less than the PS6. They use LPDDR5X, which is quite cheaper than GDDR6 and specially GDDR7. So they are the ones who will have the smallest increase and due to their high profits, the ones that can more easily absorve the costs. They are probably now under a LTA(Long Term Agreement) for the price of RAM, which would stabilize the prices for them for the next 3 years. 

In the current FY Playstation are projecting ¥600b net profit vs. Nintendo’s ¥310b 

Looking at their projected results it appears Nintendo are already taking a significant hit on those hardware sales. 

I don't really get the assumption that switch 2 will even reach the 100 million plus that will be needed. The switch 2 won't do badly but I have serious doubts it will ever reach that number. Maybe the switch lite 2 can help, but at this point I don't even think it will sell for less than launch price. Nintendo can survive because they can keep their games budgets reasonable and put out good 1st party games but the mass market is going to start opting out. Likely launch year is the peak, and I think the same for ps6 when it comes out.

Their profits are down exactly because they can and are taking a hit on consoles and also because they need to sell consoles, since their current console does not have over a 90 million of userbase, so they are taking more of a hit. When Sony needs it, let's see how they will handle. 

I agree that Nintendo is in a worse position now. But in less than 2 years from now, on the PS6 launch, things will be quite different.

Sonys stronger online (psn and subscription )Focus and all digital area starting in 2028 should allow them to subsidize the hardware. Couple that with the handheld ps6 version and they might have a business model that can work out next gen. When Nintendo catches up to Sony depends on their strategy with pricing. It can hit 600 / 700 sometime next year or after depending on how bad the chip situation will get. Currently it does not look good

If the Switch 2 reaches the catastrophic 700$ number, how much do you think the PS6 Portable will cost?

And don't you think Nintendo would heavily subsidize their hardware to stop its demise?

They don't have 2 consoles at the same time so the handheld can make the money while the home console fails while not losing money on each unity. If the Switch 2 fails, Nintendo is in deep trouble. They won't allow that to happen. Their market position is kore important than a % of the huge cashflows they have.