I bought a Steam Deck earlier this year and haven’t touched my Switch since. Nintendo hardware and games were already obscenely overpriced imo, so this is essentially a nail in the coffin for folks who were already questioning Nintendo’s prices and value proposition. Does Nintendo intentionally make its hardware really underpowered and cheap in terms of chips to juice profits? In the past this was more the case, but…
It's true that fewer people will be buying fewer consoles as a whole, but gaming is a pretty competitive market. I'm sure Nintendo will take a hit regardless, but probably no more than the likes of Sony, MS, Valve, etc.
Like any gold rush, the only people who win are the ones selling the shovels (in this case, Nvidia).