(One example, I got Dark Souls for $5 and have 100 hours on it, that's 5 cents per hour. Sure I didn't get it when it first came out (otherwise it would have been more, though not that much more -- but at the same time I may also have put more time into it with more active PvP) but I didn't need to, I had other stuff to play. I've got quite a backlog, or things to buy to add to the backlog when they're on sale, of amazing games to play that I don't need to play the latest thing at full price. Or a more recent example, I spent $15 helping back Yooka-Laylee two years ago, and it took me 23 hours to 100% it, so 65 cents per hour. Suppose it was $60, though, that's still only $2.60/hr.)
But bringing it back to the main point of the thread, which isn't cost, what's Nintendo going to do next? They have a ton of unused/underutilized IP, they can't make AAA content on a similar schedule to the rest of the industry, and it's not because their offerings are just that much better. Additionally when people can have 100+ hours of fun with the launch title, why are they going to buy other games when they come out? The Wii was notorious for having a very low bought-games-per-console figure, even though there were several great games for it. I can't imagine many third parties looking at the Switch as anything but a dumping ground (when the added dev cost is low) for stuff they already put on other platforms. In a few years everyone will have a mobile phone more powerful anyway so maybe it won't be much work at all.
Moreover, I've also heard that a development license for the Switch is crazy cheap- like $500? I wouldn't be surprised if they're more interested in indie and "pro-indie" titles than AAA. I mean, look at "One-Two Switch"- it's almost more of a tech demo than a party game.
I actually don't know anyone (that includes me) who bought a Switch as their primary system or as the system to play all games on - everyone I know bought it to play Nintendo games.
Looking at the eShop now, it's Zelda, followed by some shovelware, followed by games I can get on Steam. Or the PS4.
There's gotta be some non-Nintendo Switch exclusives that are actually good and not just ports/re-releases.
Sony has a lot of developers making exclusives, which is why I own a PS4. But virtually anything else is cross-platform already, except for the MS exclusives. And chances are, I'd get a 3rd-party cross-platform for the PS4 Pro before the Switch.
I don't know how Nintendo can dig themselves out of this predicament.
Game is amazing.
My concern with the Switch though is it's the same problem the Wii U had: Nintendo is likely the only company that will really make AAA games for it, and they can only make so many games. The next game I'm looking forward to comes in December (Mario), and Nintendo have not announced anything else compelling yet.
By making these oddball consoles, Nintendo puts themselves in an impossible position of supporting the console entirely on their own. With how much resources it takes to make AAA games today, they just can't scale up to the challenge. BoTW was in development for what, 5 years?