Don't worry, it's a poor joke about how the ftc are basically arguing that the switch is not in the same 'relevant market' as the ps5/xsx.
The Federal Trade Commission has created a new 'high-performance console' market definition that does not include the $62 billion Nintendo Switch platform.
In my opinion, the FTC is wrong.
A couple of thoughts:
1. Switch is one generation behind by design. Nintendo realised that in order to remain competitive with its blue ocean approach it needs to wait until the other two already have consoles on the market before they unleash their innovations otherwise they risk getting copied and subverted (Move and Kinect). It also acts as a differentiator which helps it be seen as a less substitutable competitor.
2. Switch obviously competes in the same Market as the other two but it is a more imperfect substitute - both because of different form factor and because of the power and price difference. It is much more likely for a consumer to have bought Switch + one of the gen 9 twins than one each of the twins.
3. This doesn't mean that the markets are different. FTC language is the problem here..it's not different markets , it's different degrees of substitutability between the products. XBOX and PS are highly substitutable with eachother and with nothing else to the same degree which creates greater risks of consumer harm from market concentration/dominance.
4. If you take the "high power market" argument at face value and to its logical conclusion it would make Switch a monopoly product as it's the only "low power market" console. It clearly is not a Monopoly as it can be substituted with multiple alternatives of different powers including the gen 9 twins.