They too closely resemble Apple, in their business practices.
Nintendo messed up with Virtual Boy, then made N64 too niche, with the cartridge and controller.
They are basically out of the hardware business, the Switch isn't much more than a midrange smartphone, with half the innards reoved.
The industry has just grown too big and Sony and Microsoft are giants playing a totally different game to Nintendo.
They try to ride their IP in a similar vein to Apple, but they have no "iPhone/iPad", to make the most of their software. Instead, they're basically a Motorola phone or an Amazon tablet.
And with the arrival of the Steam Deck, I suspect that the Switch 2 will not have much of a future.