I don't understand how this is a "skill issue" on Sony's part. Hitting native 4K is demanding even for high-end PC GPUs in 2025. If anything, Sony has been the most forward-looking company out of the big three—pushing industry standards with DVD on PS2, Blu-ray on PS3, VR on PS4/PS5, and consistently strong hardware designs. The PS4 alone launched at just $399 and was an incredibly well-balanced, forward-thinking machine for its time.
I'd say that Nintendo is a very ambitious company. It's amazing how such a relatively small company has been able to go against MS and Sony and even winning.
It's their core business—ambition has nothing to do with it. Sony stormed into the industry in 1994, and Nintendo made a deliberate choice to stay out of their way in the high-end console space. Even in handhelds, their supposed "safe zone," the PSP gave them a serious scare.
The real threat, of course, came from the iPhone and the rise of smartphones, which completely changed how people consume entertainment. Add the skyrocketing costs of HD game development, and the Switch became a logical evolution: merge handheld and console into one platform, streamline development, and consolidate their audience. It worked brilliantly.
But that success comes with risk. The Switch model puts all of Nintendo's eggs in one basket—and if that formula slips, there's no second ecosystem to fall back on.
I think 3DS and WiiU made them realize that in case one console bombs they need to keep their consoles lean to stay in the green and be able to launch a new console asap. They probably have plans B, C, D and E after launching a console nowadays, with ideas for how to replace the current one. So taking "off-the-shelf" tech stuff is incredibly intentional, their staff in charge of tech is probably as high-grade as the developers and programmers.
What exactly is Nintendo's plan if the Switch 2 or even Switch 3 struggles? Do they just shelve the idea and push out a "Switch 4"? Do they fall back on another gimmick-heavy console like the Wii? Or do they finally return to the high-end space and face their arch nemesis head-on?
In my view, Nintendo is facing a steeper climb than Sony. They've relied too heavily on a one-dimensional lineup of family-friendly games, and they're consistently late when it comes to adopting modern technologies—cloud gaming, robust online services, proper infrastructure, you name it. That delay is going to hit their famously high margins sooner rather than later, because catching up to industry standards isn't cheap. And companies like Nvidia, AMD, and TSMC will eat straight into those margins as hardware expectations rise.