If we think about this ongoing consolidation, the market leaders are:
PS = Home Console
Nintendo = Handheld
PC = Steam
Mobile = Android/Iphone.
The Switch was the consolidation of Nintendo's pathetic home console market share with their dominant handheld market share. I think one of the main reasons Nintendo was able to thrive in the handheld market was its affordability
AND its ability to consistently offer something that has been irreplaceable over the years: family-friendly software: games for children usually in tandem with corky hardware

.
If the market (Steam and PlayStation) realizes that handhelds/cloud devices are
extensions of their storefronts,
Nintendo could face the same battle it had to fight against PlayStation and Xbox all over again (but now, with Steam instead of Xbox).




...If Nintendo's software is so special and magical, why wasn't it enough to save their home consoles? (Makes you think, huh?)
Nintendo games are often overrated by nostalgic fans, and while "special" in the Nintendo way, they've managed to thrive because they're paired with affordable hardware (albeit weak) that showcases the hardware's capabilities; making them the best experiences you can have (which explains their crazy attachment ratio)
Have you noticed how, with the Nintendo Direct drama, the Switch 2 discourse has become part of the console wars, while for years Nintendo was on its own island, let alone?
what I'm saying is:
With a Nintendo console that's much more capable of running current-gen games, comparisons between third-party titles across "Steam hardware" and PlayStation hardware are going to be inevitable. Looking at the smashing success of the original Switch (which didn't have the strongest third-party support):
Who is the Switch 2 speaking to, in terms of third-party games on its console?
Either the
Switch 2 helps make portable gaming go mainstream (in terms of "big boy games") and, in turn, boosts the market share of Steam hardware and a potential PlayStation portable (at the expense of the Switch 2's own share), or it reaffirms Nintendo's dominance in the handheld space where, (if the price is in the same ballpark), Nintendo's software will need to achieve what it couldn't in the home console space
shit is going to be very interesting.