Nintendo’s hardware strategy has always been to use old, less expensive components to make a console that generates a profit. Something I haven’t seen mentioned too often is that Sony and Microsoft sell their consoles at a loss with the expectation that they will make money on software and services. Nintendo sells a console that makes a profit but they have the absolute worst services and their online store is not good for shopping, only buying.

Because of this focus on profitability for games and console, Nintendo will never make a console that keeps up with the performance of the other two. Nintendo is good at fudging the graphics, as long as you don’t look too hard at how the system renders stuff, such as the world detail in BotW or Mario games. But they will never be cutting edge.