Nintendo are sickeningly family-friendly, and as such, they simply wouldn't sell as many consoles if they were the same box as the competition, without the games that SELL consoles, like GTA and *ick* CoD (although I think, finally, that bubble has burst).
So they try to bring out cheaper, innovative (read: gimmicky) consoles. The Wii, the Wii-U and now the Switch. All were utterly underpowered, mobile phone-level tech, but with unique (odd) features. And look at how well things worked. The Wii was the most sought-after Xmas 'thing' when it came out - it's rarity was the stuff of legends. The Wii-U was unsuccessful, primarily because it wasn't very good at what it tried to be.
The Switch, however, is a very clever bit of kit, which hopefully will have some great game support. But it isn't really a competitor for the other players, it's more like an optional extra.
I almost believe Nintendo will work on a complete, self contained VR console. Possibly called WiiVii. And it will sell millions.