Let’s imagine a family with two parents and two kids, and all four of them love video games. Now let’s think about their options for getting into Nintendo Switch.
1) They can buy 4 Nintendo Switch Lites at $200 a piece, meaning $800. (Nintendo’s favourite option)
2) They can buy a single Nintendo Switch at $300, and primarily play on TV but also they could take the unit out of the dock and take it with them on a trip or whatever.
3) They can buy a Nintendo Switch OLED at whatever that costs (I think $350?) and do the same as above but have it look slightly nicer and have a better kickstand.
Now let’s imagine there’s a TV-only Switch at the same price as the Lite, $200. It would be a singular purchase, so they’d only get $200 from this hypothetical family. Not to mention, now, instead of being THE only system in that space (Sony and Microsoft do not have handheld devices and the Steam Deck is exclusively for enthusiasts as of right now) they would be competing with Microsoft’s Xbox Series S which is more expensive, but there’s also the value of Game Pass which would be hugely beneficial to this family of four, and streaming capabilities for services like Netflix and Disney+. On top of all that: They’d need to R&D the system and then also market it, which is not even remotely cheap, even if this hypothetical system seems like an easy thing to whip up on the surface.
It’s not as simple as “they should do it because it‘s like the Lite but reverse.” There are way more factors you’re just not considering.