Earlier quoted context omitted.
Nintendo also has every incentive to play it safe this round. They no doubt want to avoid a third entry in their hit-miss streak: N64, good sales, but not great. NES and SNES were better. GameCube, total meltdown (for the time). Wii, excellent sales. Wii U, total meltdown. Switch, excellent sales. Switch 2, anything but a meltdown.
The GameCube was particularly tragic, because it had a genuinely fantastic game library.
But if you are Nintendo, the Wii and the Switch are about equally successful phenomenons. That didn’t save them from the Wii U; and the success of the Switch certainly won’t save them from a Switch 2 implosion. Even if the games are good (like the Wii U launching with Mario Kart 8, now the bestselling Switch title.)