Well personally I don't see them charging over $400 because then you get into the conversation of "why should I buy this when I can get a stronger PS5 for the same price?" and if their offerings are not up to par, there's more things for consumers to question
And after the success the Switch had I do not see a compelling reason for them to suddenly care about chasing parity or even getting close to the other two in terms of power. I would rather expect the bare minimum and be pleasantly surprised with more rather than act like it's a locked and loaded guarantee that Nintendo is going to give us a portable PS4 Pro
While this could be the case, realistically what would this do for a game like TOTK if it was built for the switch for the last 5 years?
A few people have brought up the idea that a PS5 has more value if a Switch’s successor is priced similarly, because it has more raw power, but that’s questionable. One can’t play a PS5 anywhere, and your ability to complete its games depends on how long you’re willing to be tethered to a wall, not experiencing a power cut, then some might say needing PSVR2 for the complete PS experience. More than that, even, if there’s any truth to the whispers in this thread. Then there are questions of power consumption and energy efficiency, which would surely matter in households in the midst of a cost of living crisis. After that, it’s about access to exclusives and the library’s depth. The current Switch has more games available on it than the PS4, a cheaper online service, and they’ll be backwards compatible on its successor from launch. So, perhaps people will see value in those other things, OR determine that the point of entry for the complete Switch experience is much lower than the PS5’s. It’s no longer about raw power. It’s about the SoC design, scalability, and smarter engineering. If it isn’t already, this will become more apparent.
Nintendo aren’t averse to the idea of a high-performance console, and never have been - they didn’t align themselves with the leading graphics processing company in the world to make backwards-thinking, unambitious hardware. I’ve put it to this board time and time again that the PS5 is irrelevant because the true performance thresholds are the XSS for home consoles, and Steam Deck or Apple’s M1 chip for portable SoCs. That’s where a prospective successor really needs to be. We know that the leaked GPU is better than the one in XSS, so, that’s an encouraging start, AND it will have hardware-specific advantages over each of those, as well as the PS5 and XSX. It will be better than PS4 Pro and XBox One X by virtue of having the better CPU, more modern architecture, RT and DLSS facilities. Even if they’re not competing with PS/XBox directly, they’re still operating in mobile/portable spaces, and tech has been rising rapidly there - One reason why the 3DS was a failure relative to its predecessor is that the iPad, iPhone 4 and 4th Gen iPod Touch released a year earlier, and people had seen what was possible in mobile tech. Nintendo were also embarrassingly late to the Minecraft party, for example, and as good as the 3DS library was, it wasn’t THE definitive portable experience of its time. 3D Without Glasses didn’t have the same pull. Ocarina Of Time 3D and “More N64 ports” did not have the same impression in 2011 as in 2004 with Super Mario 64 DS. Adopting a similar approach will not lead to growth or positive results, so, THAT is why they care. There’s also the fact that there is no 3DS to help them weather a Wii U-esque storm, and having some more performance on board would mean less development time and money spent on creating nip-and-tuck solutions to mask hardware limitations.
So, we CAN identify common interests in the productivity boost that would happen as a result of more available resources - That will be important in maintaining prolific software momentum, especially when the well of ports runs dry. It must be fit for a generational purpose.