These days Nintendo doesn’t really try to compete on performance. The Wii, for instance, was unapologetically what it was. You played relatively low-poly, low-res, low-texture games on it, but you played them, because they were fun and imaginative.
That’s their main thing. Performance comes, like, 4th.
However, this time, they got burned on their own games. Zelda Tears of the Kingdom had pretty obvious performance issues that even the normiest of normies could notice, for instance. And my memory is short but I think that wasn’t the only first-party game where performance was a challenge.
I think this time they’ll care about performance more than last time. It’s not like they’ve never done it. The really old consoles from the 20th century were competitive on performance, right?