Nintendo has had a lot of success with the Nintendo Switch and they are looking to keep that going by supposedly releasing a new version of the Switch in 2019.
This is not all that surprising. It would be more surprising if they did not! Nintendo always tinkers with their hardware. The Nintendo 3DS is pretty much dead at this point so now Nintendo only has one major product on the market.
The rumors state that this new Nintendo Switch (please do not let them actually call it that!) will be smaller, cheaper and aimed at those who have a 3 or 2DS, but who have not made the jump to the Nintendo Switch yet.
There are no official details on this yet, but there is talk that the screen will be different, it will be smaller, more affordable and one rumor that I find very interesting is that the Joy Cons will be permanently attached to the device. If the idea is that this is a thing that is made to be taken on the go, that does make sense.
However, there are some games that will be simply unplayable. One that springs to my mind is Super Mario Party. There is no way that you can play that game in handheld mode so it would not be compatible with the new smaller Nintendo Switch.
The jump in price from the Nintendo 3DS and especially the Nintendo 2DS is huge! So it is understandable that some parents have not let their kids make the jump yet. However if Nintendo can get a cheaper Switch on the market in time for Christmas 2019, I think they will have a monster of a hit on their hands.