Hasn't Nintendo openly stated they don't see Xbox and Playstation as competition, at least not in the traditional sense?
I can't really blame them tbh. Sega was the last company doing something similar to Nintendo, and Nintendo won that war. Now they practically exist in their own market system. It really doesn't matter that Playstation and Xbox are more powerful, as that wasn't Nintendo's selling point.
Nintendo makes evergreen content. The public will always, and I mean always, want the next Pokemon, Super Mario, Zelda, Metroid, Mario Kart, Smash Bros, possibly Animal Crossing, etc. These titles don't have expiration dates.
And that's not me mocking the phenomenon either. I will unashamedly eat most of those titles up until the day I die. I'm literally wearing Zelda themed socks right now. Quite frankly, I think other companies would dream of having as many titles of that kind on their roster.
I just think some gamers get confused because console power is such an issue for other companies. Nintendo is playing a different game from Sony or Microsoft though, so it's not as relevant.