Nintendo just shot themselves in the foot.
I don't know how much the rest of you know about Japanese culture (I'm an expert), but web browsing and online are huge parts of it. It's not like it is in America where you can become successful by having timed exclusives. If you don't let someone browse in Japan, you bring shame to yourself, and the only way to get rid of that shame is repentance.
What this means is the japanese public, after hearing about this, is not going to want to purchase Switch, nor will they purchase any of Nintendo's games. This is HUGE. You can laugh all you want, but Nintendo has alienated an entire market with this move.
Nintendo, publicly apologize and cancel Switch for 360 or you can kiss your business goodbye.