Well very obviously of course there is a substantial market for it, but the problem is the competition. Sony got all the third party games on its first system as Nintendo made the mistake of sticking with cartridges. Ever since then Playstation has become what most console gamers get every single gen.
So obviously a huge console market exists, it's just that most of those people are used to always buying Playstation for decades now. So there needs to be a very good reason for them to switch from what they always buy to a Nintendo system instead.
It's possible to break these market strangleholds. For example Xbox's one big success was when Sony way overpriced their system and the PS and Xbox systems that gen were basically twins so it was easy for people to decide to just buy the one that was a better deal. Also Wii probably had pretty good sales that gen too even when you take out all the usual non-gamers who bought the system, since it gave people a completely novel way to play games, even despite not being a powerful system. Also PSP broke into the handheld market that Nintendo dominated because it provided a competent high-end handheld experience.
To make it even more obvious, realize that lots of people play the Switch purely on their TV as a dedicated home console.
So yeah, there of course is a big market for it, but it's hard to break Sony's stranglehold in the market because lots of people looking for a home console have been just playing playstation for several console gens. But it would require Nintendo to get full AAA third party support (which they seem to be getting close to with the Switch2 for the first time since Gamecube), and super strong top notch first party lineup to be the differentiator (which so far Switch2 is pretty weak on, but Switch did amazingly well and was honestly probably the first time since the N64 that Nintendo's first party lineup was truly extraordinary enough, well really in combo with all Rare's second party games, to sell the system by itself).
I think the one question was whether people would buy a really expensive system from Nintendo. Nintendo always had the affordability on its side. But with the Switch2 that is no longer the case with it's substantial price, and despite being a handheld and therefore not as powerful as the consoles, and despite having a lacking library so far that pales in comparison to what they were putting out to make the Switch popular in it's first year, it is still selling decent and actually good compared to the poor sales of the competition now. So imagine if Switch2 was purely a home console, but more powerful since it could abandon the handheld form factor, and imagine they didn't screwup the software schedule so far this gen and instead had a Switch-like lineup. That would sell very well.
Hybrid is definitely the way to go for Nintendo, cuz why compete on Sony's strength instead of competing on their own strengths. But Nintendo hasn't gone the powerful home console route since the GC, and that was following a system that lost all third party support and the GC looked like a toy and had a somewhat weak first party lineup from it's big system sellers. With Nintendo's renewed popularity, today they could definitely sell well as a dedicated home console, as long as they had the fully supported AAA third party lineup and a strong Switch-like first party lineup. It simply would be a worse decision than sticking to a hybrid system.
With such a system, in a world where let's say Playstation sells ~100m, Xbox sells ~40m, a good Nintendo home console I'd say would sell probably ~70m.
Last edited by Slownenberg - 54 minutes ago