I don’t personally like Nintendo’s actions, but I’m not sure why this article is trying to imply Nintendo miscalculated and don’t know what they’re doing - as if bricking consoles will somehow lose them money.

From Nintendo’s perspective, turning the used market into a minefield of bricked consoles can only be a good thing, because it encourages people to buy new, and buying new is money in Nintendo’s pocket.

And the conclusion that people won’t buy the console for their kids because of this? “Sorry kids, but Nintendo are bad so we cant play your favourite Mario - you’re getting a steam deck instead!” Like heck! A small minority maybe, but people will generally buy their kids what the kids ask for.

Nintendo know what they are doing.

it can suspend all kinds of services on your console, up to and including bricking it completely.

No, just online services.

Xbox and PlayStation have the same terms & conditions. Why is Nintendo being singled out?

Xbox:

You will not attempt to defeat or circumvent any Xbox Console, Kinect Sensor or Authorised Accessory technical limitation, security or anti-piracy system. If You do, Your Xbox Console, Kinect Sensor or Authorised Accessory may stop working permanently at that time or after a later Xbox Software update.

PlayStation:

we reserve the right to take any action we believe necessary to remedy the violation or to protect SIE’s interests, including: (a) the automatic removal or blockage of content associated with those Accounts; (b) implementation of upgrades or devices intended to discontinue unauthorized use; © the permanent or temporary disablement of access to any PSN Content, PlayStation Devices, products, services or features; (d) notifying law enforcement or the appropriate authority; and (e) initiating legal action.

edit: added some more words from the respective ToS to make it more legible