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That depends. I don't think Intel actually wants to be in the market for whole (or barebones) systems. they probably would much rather just sell the processors and leave the rest to others. The NUCs were just a tool to kickstart the market, which seems to have worked quite nicely. The only issue being that now both AMD and Apple are strong competion.
So under that assumption this withdrawal makes a lot of sense, especially now that they need to focus all of their resources to catch up in their main business segment.
Didn't Valve make similar comments for the steam deck? That they see it as a tool to create a new market and hope that others follow.
Even if someone else were to make a much better handheld. As long as it runs Proton/Steam Valve would still win.