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Nintendo has the culture of releasing consoles with well experimented internal components as opposed as the cutting edge technology. They seek reliability, good cost and established supply chain on their chips above all other things. It was not like that for Gamecube and N64 (arguable 2 failures) but it was like that for everything else.I do wish that if Nintendo were to make a new home console, it would be on par with at least PS5/Xbox series line of consoles in terms of specs.
Sadly tho, realistically Nintendo probably won't and will launch an underpowered console compared to the competition.