Games

Answering this post is difficult without writing an entire book, but I think the existence of this form factor, the iteration on it, and the cycles of hardware going out of date and being replaced will, in the long term, have more and more of a tangible effect on all consoles, and Nintendo will feel that last out of the three. Rumor has it Xbox has given up on being a console and will actually just be a PC going forward.

With console exclusives becoming fewer and further between and both first parties now willing to ship PC ports there just is less of an incentive to be stuck to a specific piece of hardware.

This is basically the gist of my point, and long-term, I think it will apply to handhelds as well. As an example, on the current Switch, you can get compromised versions of the Witcher 3 and Doom Eternal, or you could just get the better version of the game on PC; it will run perfectly at home, and you can run it at acceptable settings when handheld. Feel free to extrapolate that a few years into the future when there's a new handheld PC out and the consumer is comparing the latest new game on PC against a Switch 2.