Time will tell if the Switch will work out like the Wii did. The Wii's killer success was brought upon by a low price and a glut of decent 3rd party support even if a lot of that support was just shovelware. I'm honestly not convinced that the Switch is really novel enough at this point in time to make a splash for them in the same way that the aforementioned Wii (and, to an extent, the Gameboy) did. The Switch has a couple of factors working against it as a true blue ocean tactic:
1. It's not unique. The shield already exists, and gives you a greater variety of games
2. The price point is just expensive enough to make potential buyers balk if they're put off enough by its technical capability and lineup
3. Some of the announced features are already clunky, like the pay-to-play online app thing
So it's not carving its own market niche with the Switch, it's a bit past the point of an acceptable expense for a novelty, and they're demonstrably behind the times with features everyone else has. It won't be a death knell—Nintendo's made of sterner stuff—but it's really difficult to tell what kind of thing they're actually going for here. It's like a turbocharged version of the WiiU concept, which people were hesitant to buy into. With the Wii, Nintendo appeared to have a clear set of goals for the product and wound up meeting those goals and then some.
They can salvage what could be a list of pitfalls by opening up their dev tools a bit to interested parties and giving themselves a volume advantage with quality software. If they can court good 3rd party devs, this could turn out very well for them (like the 3DS is).