Because Nintedo is not for enthusiasts. It's for parents who buy a cheaper console for their children and has Mario, Pokemon and kirby.
remembers the 3DS debacle. What happened?
Company's CEO says Nintendo was forced to drop the price of the 3DS in order to help the platform "gain popularity."
www.cnet.com
Nintendo is not a brand that can compete in the premium market. If Nintendo offers a more expensive console than a PS5 (which is not even meant to be a premium product, but is perceived more premium than Nintendo´s) or the SW2´s price is in the same realm of a PC handhelds; They will be alienating their mass market audience: SW2 pricing is at odds with the market.
Either everything goes up or Nintendo folds.