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[Zannegan]

How will it split the user base when most likely all versions of the switch console would run the same games?

The $500 PS5-lite described above is way overpowered (and overpriced) if you're just planning on running the same games. Making games to take advantage of that hardware would absolutely fragment the user base. And if you're not going to take advantage of your $500 console, what's the point?

A $300 Switch-in-a-box wouldn't be fragmenting the userbase so much, though A. the messaging would be all over the place, and B. I doubt there'd be much demand for it anyway.

 

[SF Kosmo]

The low end SKU will simply be the existing Switch Lite.

I think Nintendo is going the Game Boy Color route with this one in that there will not really be two separate ecosystems, everything will be cross compatible at first and slowly mostly focus on the newer hardware over time.