While I do think it says a lot that parents are willing to splurge like crazy on Apple products which are incredibly expensive and incredibly delicate, I'm not sure the two can be compared. The Switch 2 is 'just' a gaming console. The latest Iphone is more of a utility for everyone to stay in touch -- and a calculator, camera, video-recorder, etc. Yes, parents will definitely buy Nintendo's newest console for sure, but they can only get away with pricing it so high unlike Apple. I don't think even Nintendo has quite the same fervor surrounding their products as Apple does.
In any case, the Switch 2 will sell like hotcakes, but it's up to Nintendo to price it competitively enough to keep the momentum going well into the future. The hybrid formfactor isn't quite as new as it used to be (because of them) and I do agree that it was COVID 19 + Animal Crossing that previously took them from already matching the Wii's success (which was the highest they previously were) to
doubling that and becoming the most successful they've ever been as a company.
It's not an exaggeration. The Switch 1 rocketed to be as successful as the Wii in just the first few years, but it was the pandemic and Animal Crossing that took them from that previous all-time high to double. It was insane how much the lock-down and chilling with Isabelle and Tom Nook actually helped Nintendo haha.
I doubt this can be replicated however and that's honestly okay. I don't think the Switch 2 is
also going to be the most successful system of all time and that's okay. But what they do need to be is be competitive with their marketing and that means trying to get as many Switch 2's into people's houses as possible. They can't do that if it's $500+. The PS5 and Xbox Series S both cost $500 and the Switch 2 is neither competing or as powerful as either of those. In contrast, the Series S is sold for cheap at $300 and the entry-level Steam Deck with an LCD screen is $400.
To me, anywhere between $300-400 is the sweet-spot. I have no idea how much more expensive parts have gotten, but I'd like to think Nintendo is using their massive brand power to get as much of a deal as possible on all components (not just with Nvidia). If they can get this thing as cheap as possible and still make a profit, they'll be rolling in dough for another generation. But I do agree that I don't think the Switch 2 will reach the sky-high profits of the Switch 1 and that's genuinely okay. Switch 1 sales are unlikely to just completely peter off and I fully expect them to continue supporting the Switch 1 for several years after the successor launches, especially to beat the PS2 and nab that "best selling console in video game history" achievement. They have theme parks and movies now. Nintendo is going to be just fine.
(kudos to
@pierre485 on Twitter for the image)