

They’re not competing for the same slice of the pie, though. Microsoft isn’t trying to take Nintendo’s customers because Nintendo’s customers want very specific things that Microsoft isn’t really offering. For example, Nintendo caters extensively to parents who want a safe space for their kids to play online. The Switch doesn’t even SUPPORT voice chat without the aid of a separate smartphone. Xbox Live is notoriously the opposite of that, because they focus on teens and young adults, who Sony are also targeting. Basically Nintendo sells to a very specific market, and the other platforms sell to “everybody else”.
By contrast, in the 90s Sega was SPECIFICALLY trying to steal customers from Nintendo.
https://en.wikipedia.org/wiki/Jesusland_map