Switch 2 has actual competition from Nintendo clones
Briefly

Sony and Microsoft maintain a competitive stance towards Nintendo, with Sony dismissing any market overlap between PlayStation and Nintendo products, while Microsoft seeks to support the Switch platform. The upcoming Switch 2 aims to match the performance of PlayStation 5 and Xbox Series X in a portable format. This competition is not solely hardware-driven, as seen in the presence of high-quality games rivaling Nintendo's offerings. Success stories like Astro Bot demonstrate that smaller teams can create exceptional gameplay experiences, further intensifying the competition in the gaming space.
At this year's Game Developers Conference, Team Asobi studio head Nicolas Doucet attributed the success to a small team (60 people), compact gameplay (around 12 hours) and constant review process that meant Asobi was never “compromising the players' happiness.”
The Switch 2's specs inch Nintendo closer to offering the current-gen experience of the PlayStation 5 and Xbox Series X in handheld form.
Read at Polygon
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