"Nintendo will have no problem "surviving". Their profits are always high."
Not anymore they aren't. They lost $548 million in 2012 and $232 million in 2014, and their profits in 2013 and 2015-2016 only totals to $604 million. (Source)
"They have plenty of cash reserves if they bomb, but I doubt they'll bomb."
The Wii was obviously a huge success, but i doubt they'll be able to capture that kind of lighting again. Meanwhile the Wii U has been a failure from a sales and marketing perspective and is probably the biggest contributor to the huge losses above. I believe the New 3DS is doing okay now, but it had a very rocky start. So i don't have unbounded confidence that this time they'll get it right.
Yes, they made a lot of money before the Wii U and still have a lot in reserve, but if the Switch follows in the Wii U's footsteps and performs poorly Nintendo can't afford to keep losing money forever.
grep me no patterns and I'll tell you no lines.