The majority of the customer base will not have any desire to pirate games, especially on games consoles.Of course it effects the system. Third party game devs will drop support. Why spend lots of time and money developing a game when most people will download it for free. The switch needs a good few years before it's hacked so we get some great games to pirate later.
Nearly 20 years ago when things like the Dreamcast existed, gaming was not as mainstream as it is now, so maybe a greater percentage of gamers were "hackers" and actually affected sales to a greater degree. Not to mention other factors, like the internet becoming more accessible to the masses. Information flowing freely, information like system exploits, burning CDs, easier purchase of flash carts, etc.
Anyway, a wise businessperson will take piracy into account when budgeting, same as any other loss. There will always be a greater ratio of legit buyers to pirates. To exclude a platform simply because of it's low barrier of entry to piracy is just ludicrous.
If anything, it's just a scapegoat. Instead of trying to inform people of the complicated business decisions that go into game development, just blame those Dirty Entitled Pirates™