I've had some time to reflect on this and I still think that the pricing structure on this is just wrong. It has nothing to do with Nintendo not being able to do the things Sony and Microsoft do, but you have to look at Nintendo's value proposition at the price point they are coming to market. The average consumer knows that they aren't going to get everything they want in terms of games on a Nintendo console. Sony and MS have established themselves as the two platforms where you go to get your mainstream gaming fix. They each have their own limited list of exclusives and you add that into your decision making. But ultimately third party games, which make up a bulk of the available games are available on either platform. So the difference between the two systems then becomes which exclusives you want. We all know this. Nintendo doesn't have this. And hasn't for a long time. They have their 1st party lineup, fun family friendly/party games and some niche games (mostly in the RPG space) that aren't really a mainstream appeal. Nintendo is a supplemental console meant to round out a game library, unless of course you are a huge Nintendo fanboy or family that just wants something simple and family friendly and/or social. I just don't think the market for the latter is that big.
So what does this mean? At that price point, it means that like or not the Switch is competing with the PS4 and Xbox One whether or not it wants to believe it is. It is trying to convince people who own those systems that it will be a good compliment to what they already have. And that market will eventually pick up the Switch at some point. Me personally, I am sold on the Switch, but not until a price drop or bundle deal. I suspect many others feel the same way.
I don't get caught up in the debates about power and consoles, etc, but I think in this case it matters, especially when the cost to get a new PS4 or Xbox One is the same as Nintendo's new system which is less powerful, has fewer games, and doesn't have the mainstream 3rd party stuff PS4 and Xbox One are getting. And if I'm a casual gamer, unless I LOVE Nintendo 1st party stuff why am I going to pick up a Switch over a PS4 or Xbox One? Why get a Switch when you can get a PS4 with a bundled game for the same price as the Switch, and the Switch is inferior hardware? There's literally no reason to when looking at the price point between the two systems. And in 2017 most casual gamers want to get the big AAA stuff like CoD, Madden, Assassin's Creed, etc.
The handheld aspect of the Switch is still being undersold in my opinion, but that all comes back to price. It's too damn expensive for the handheld market. The 3ds didn't sell well until its price was cut. And while I believe the Switch could ultimately replace the 3ds, it won't at that price.
Then there's paid online. I don't necessarily have a problem with it. Sony and Microsoft do it. Nintendo has the right to do it. I don't like the practice but it is what it is. But it comes back to value proposition. While we don't know the price point yet, there is nothing I have seen that leads me to believe Nintendo will charge less than what Sony or MS do for PSN or Live. And what does that get me with Nintendo? A chance to play Mario Kart and Splatoon online. And a couple of ROMS I have access to for a month on 30 year old games. Yippie. If I am paying for PSN or Live I at least am getting multiple free games a month that I have access to as long as I remain subscribed, and in the case of Live I get to keep 360 games forever. And on Xbox and PS4 I am at least getting access to games like Destiny, CoD, Battlefield, Madden, you know, the mainstream stuff to play online. It may be a shitty business practice but in comparison the value proposition between Sony/MS and Nintendo is huge when it comes to pay to play online. Unless Nintendo is charging $20 a year or less (which they won't) to play online it's a total joke.
Everything with this system is just expensive relative to the competition in terms of what you are getting for it. It can still be successful and may do very well. I think it will in the long-term honestly. But right now it's massively overpriced and underpowered relative to its competition with a much smaller games library, more specifically a much smaller 3rd party games library that the market cares about. And that doesn't even touch on the expensive accessories and lunacy that is tying voice chat to a smartphone app rather than a headset and Mic. It's just really stupid business decisions all around that show Nintendo doesn't know what planet they are on.