Games

No, it's quite the opposite, Nintendo is at a disadvantage because they need to make modern-feeling games on decade+ old hardware. Their platform is attractive because of the quality of the games they offer, it has almost nothing to do with the hardware. They've pretty much always been behind WRT hardware performance, but they're almost always ahead with gameplay experience. We bought a Switch largely to get access to Nintendo exclusives, and we almost never use it in handheld mode so that wasn't a selling point.

What AAA studios seem to forget is that gameplay and performance should always come first, and graphics should be a secondary concern. If Cyberpunk 2077 was cartooney and delivered on all of their gameplay promises, it would've had a much better launch. Likewise for other major AAA launches, players like fancy graphics, but gameplay and performance are far more likely to kill a game than simpler graphics. Yet AAA studios consistently have rocky launches because of their lofty graphical targets.

Nintendo games work really well at launch, both from a performance and gameplay perspective, to the point where I really don't feel the need to look at a review to decide whether the game will be playable at launch. Yet I feel the need to do that every time for major AAA releases, except maybe Rockstar (they push hardware limits and are very stable and fun at launch).