Becoming a game studio would be a massive fumble. They make so much money off of having all of their games exclusive. Besides, the switch 2 will definitely be much stronger than the original one, that was 2017. They also have more handheld competition.
That's true. Admittedly there's a lot of hearsay about it right now, so it still could be great. I'm just spitballing based on the trailer, which revealed a mario kart that looks very similar in graphical intensity to mk8. There could be a huge leap in performance who knows. As for handheld competition, the only safe competitor to Nintendo from their legal wrath is the steam deck as that's basically the only handheld right now with modern power that doesn't explicitly encourage using it primarily for emulation. And it is a very good device, but with the size and weight, not to mention the pretty small battery life, it's not really a competitor to the switch, it's targeting a different demographic. That leaves handhelds specifically designed for emulation from companies like AYN, AYANEO and Retroid, all of which would be very vulnerable to lawsuits from big N if they felt like it for encouraging emulation of their systems (including switch)
I ain't buying what looks like a slightly bigger nintendo switch with a few improvements for around $400