Companies can earn more profit by differentiating themselves from their competitors rather than trying to be the same. Microsoft brings the broadest ecosystem c

Companies can earn more profit by differentiating themselves from their competitors rather than trying to be the same. Microsoft brings the broadest ecosystem combining Windows and Xbox and all their cloud chops. Sony tries to be cutting edge wihth VR and exclusive high fidelity AAA titles. Nintendo caters to people who play for fun rather than the best graphics, usability over cutting edge, casual gamers and families, etc. This is all just to say that Nintendo can't compete on hardware performance and graphics so it focuses on other things to be best at.