When the Switch came out it was less powerful compared to contemporary devices at the time, and 8 years have gone by, so it doesn't seem difficult to believe that Switch 2 will be significantly more powerful.
It's tough to break into that market because people are already playing a lot of "forever games"
It might be a better idea to start with small projects on mobile and gauge reaction, then build them up and bring them elsewhere if they need to. People usually like that stuff on mobile more for some reason.
It was maybe an experiment to try and author a bunch of live service games, but it ended up being a fumble too. Probably a more expensive fumble because they started out as big projects instead of smaller ones.
There was a story recently blaming financial issues with game developers on mismanagement, not the cost of developing modern game assets.
GirlUSoCrazy's comments