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Shigeru Miyamoto comments on AI, says "Nintendo would rather go in a different direction"
(nintendoeverything.com)
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They are not behind. Since they are not trying to catch up with Sony or MS. They purposely choose to use cheaper hardware and go a different direction. That’s not the same as being behind.
It’s their Blue Ocean strategy. They don’t want to compete directly against Sony and a trillion dollar company called Microsoft. Since the last time they did that it almost took the company under. They make a profit on each Switch sale since the first one was sold and they offer an entirely different gaming catalog that targets a different audience.