There is no pressure for Nintendo to conform to industry trends. They used tech from 2 generations ago and sneakily created one of the most successful systems of all time. This is a conservative company but it has worked for them more than it has against them.
They're the ones that brought gaming back from the dead. They focus on trying to capture the average person. There's something that Reggie said several years ago that still rings true:
"How many of you know someone who has never seen a film? how many of you have know someone who has never read a novel? now how many of you know someone who has never played a videogame?" their goal is to make gaming so mainstream that it's STRANGE to encounter people who haven't played videogames or owned a console.
Their next console will be as powerful as a Xbox Series S at best, but they have amazing artists and they give them time to cook. Tears of the kingdom looks great for something running on the equivalent of hardware from 2006.