I mostly agree, but I'm worried about what it means for third-party support.
If the Switch is significantly underpowered compared to the competition, it means that developers won't be able to easily port XBone/PS4 games to the Switch which will hurt the Switch's lineup. In that case, Nintendo's best hope for success is that their Blue Ocean Strategy will take off and people will treat the Switch as not just another console but as a supremely versatile handheld.
The reason the Wii got away with it was a) Blue Ocean Strategy gave it genuinely unique games and b) the PS2 was still kicking around so the Wii version can easily be ported to PS2 and sell on twice the number of consoles (i.e. they'd make a 360/PS3 version and a Wii/PS2 version).
The Wii U had beautiful games with beautiful art direction (Yoshi's Woolly World, anyone?), but it still flopped largely because third parties ignored it and Nintendo didn't have a good enough Blue Ocean Strategy.
If the Switch is significantly underpowered compared to the competition, it means that developers won't be able to easily port XBone/PS4 games to the Switch which will hurt the Switch's lineup. In that case, Nintendo's best hope for success is that their Blue Ocean Strategy will take off and people will treat the Switch as not just another console but as a supremely versatile handheld.
The reason the Wii got away with it was a) Blue Ocean Strategy gave it genuinely unique games and b) the PS2 was still kicking around so the Wii version can easily be ported to PS2 and sell on twice the number of consoles (i.e. they'd make a 360/PS3 version and a Wii/PS2 version).
The Wii U had beautiful games with beautiful art direction (Yoshi's Woolly World, anyone?), but it still flopped largely because third parties ignored it and Nintendo didn't have a good enough Blue Ocean Strategy.