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Switching to an ARM SoC and off the (basically dying) POWER architecture was a smart move on Nintendo's part, in order to take advantage of industry economies of scale, etc.

However it also potentially makes them vulnerable to being on the upgrade treadmill that e.g. phone manufacturers have to be on. Expectations and pressure will be there to be on the "next" SoC platform.

But more so it makes them less "unique" and "bespoke" and it becomes very hard to differentiate the Switch from any mass market phone or tablet. It's basically that, but with Nintendo's own OS instead of Android, and along with that their highly sandboxed environment.




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