The Evidence: We've seen the VR code in the Switch OS from the hacking community. We've seen the patents.  We know that a Switch revision is coming.  We know that what is holding the Switch back from being VR capable is the screen resolution.  Given Nintendo's track record we know that revisions are likely coming in the next year or two. We have seen remarkable ports over to the current system.  We have still seen some games that are claimed as "too graphic" still for the Switch.  We know that PS5 and the Next Xbox are going to start bubbling up next year. Rumors have floated around recently about a 4K Switch version releasing next year. Nintendo has a new president who has promised Nintendo to come back to the forefront of the industry within a short few years.  He has had the plan for a while and sounds like it could be pretty aggressive. Metroid Prime 4 is likely releasing next year and nothing has been shown for it.

While I had originally predicted when it was announced that Metroid Prime 4 might be a flagship for VR, a rumor and somewhat obvious fantasy use of the "Switch" placed in a head mounted casing to "Switch" to VR mode as a secret future function, evidence has shown recently that Nintendo had intended for just that!  However, the screen resolution is way too low for functional VR.  I had also predicted in the past that Nintendo will start upgrading Switch on a "component" basis, something that has not really happened since the N64 memory module.

The Prediction:  Nintendo releases a 4k Switch with Tegra 2, with VR  being the marketed function similar to 3D on 3DS at the time, using Metroid Prime 4 as a flagship.  This upgraded Switch will just be an extension of the existing Switch, not intended for more power, but rather mainly 4k output scaling to accommodate VR and some of the more graphic current gen games if 3rd parties want to use it. Not all games have to use the 4k VR feature and developers can decide if they want to use the extra power or make it more backward friendly. If a game only works on the new Switch, then it wouldn't have been able to run on the old Switch version anyway, so this is a mute point.  Indie games and other games will still come to all Switch versions. 

Different pricing packages offered with body only packages for existing switch owners. Original system will go down to $200-$250 permanently. We will also likely see a small Switch with permanently attached technically-simpler controllers for kids and easy quick play with $200 pricing model, think the size of original GBA but with bigger screen. $400 for the NEW Switch VR, $300 for just the body. Likely, they will remove the bezel as well and it will come with the headset components or even cardboard housing ala LABO. It is meant to be partially used with other LABO kits as well to make an immersive experience.  We will likely see Mario Kart VR come further down the line.

All of this will, of course, lay the 3DS to rest.

Reflection: IF this does happen, what effect do you think this would have on the industry in light of the next gen consoles?  What games can you see of Nintendo's in VR? Will this cause too many complications for the existing userbase?  What else do you see happening as a result here?

I hate the trend of dividing the userbase into two. Just let the Switch live its lifespam uninterrupted and then jump with another more powerful console. Mid-generation upgrades are still iffy to me, especially on Switch. Developers already have to program two different configurations (portable and docked), if an upgrade came along they would have to develop four (docked, docked HD, portable, portable HD).

Eh.. the Tegra X2 is afaik not the gigantic leap in capabilities that would make this a sensible move. Most games, especially the non-indie ones, would need to heavily upscale to 4K in portable mode and it's doubtful any could run in native 4K in stationary, in some devs might be able to enable checkerboarding 4K for a nicer image quality.

VR would need a heavily reduced fidelity to be useable even at sub-native res, or they'd need to integrate 240+Hz eyetracking to cut rendering demands with foveated rendering (only the fraction of the screen the users eyes are focussed on is displayed in full res) making it probably a quite expensive device.

I like the input. It is possible it might not be true 4k but pseudo UHD. It could also be an up conversion of sorts. Mainly to provide a high enough resolution for a decent VR experience. If Nintendo has something in mind, they will figure out how to do it effectively. It likely won’t be conventional, as we all have seen from all of their consoles. I believe while Playstation 5 might be more VR focused out the gate, Nintendo still could be the one to bring VR to the masses with more convenient, affordable, and family friendly options.

Yes next year, its possible to have a 18watt portable 4k VR ready device!
Nevermind if thats actually true or not (which it clearly isnt).....
and ignore if that actually makes sense for nintendo to do (jump start a new gen in a year's time).

https://www.bestbuy.com/site/sony-xperia-xz-premium-4g-lte-with-64gb-memory-cell-phone-unlocked-bronze-pink/5859703.p?skuId=5859703

Some cellphones have 4k comparable touch displays already. VR capable is possible depending on how they design it and what level of a VR experience you are looking for. Nintendo has done things with Switch that nobody thought could be done right now by finding happy compromises. Panic Button has been able to get Doom and Wolfenstein 2 running really well on the less powered system. It isn’t what you do, but how you do it.

It wouldn’t be a new generation, it would be this generation, the same Switch family and LABO support, just with added functionality for those that want to experience it.

Did you know the joycon could do everything they can with LABO before they showed that first trailer? If the current Switch had a higher resolution, then you could put it into a LABO made headset and tada a modest VR machine, similar to cellphone gear. But the current model wasn’t given the needed tech. Hence an XL model. Not everyone wants to do VR so why force them to pay for it? Just let them use a regular Switch.

Also, I didn’t say it would be this next year, the rumor on a 4k Switch did. It could be a 2020 device. Nintendo has been delaying a lot recently. People were sure that Yoshi, Bayonetta 3, Mario Maker and Animal Crossing would come this year. Pikmin 4 is supposedly completed and waiting according to rumor. I think they changed their plans this past fall/spring. It’s possible that they had hoped to get a VR XL model out next year but it was pushed back. If it was, then we will likely see Metroid Prime 4 pushed back too. Next year will be 2nd tier games with Pokemon as the big title if that’s the case.

I have no doubt Nintendo will enter the VR market, I just think it will come on the next Platform. I believe the best time for Nintendo to enter the market is 2020 or 2021 with a new custom made 7nm SOC from Nvidia. That should give them the power to gain access to all AAA 3rd party games in both the Retro space and the VR space. All three companies should have VR solutions next gen, along with at least Goolge making a serious push in gaming. With Some 1st party love from Nintendo, Sony, and Microsoft, and some big name AAA games made for VR, I think VR will be pretty successful next gen. Maybe not mainstream, but successful.

Xmas 2020

The VR patent was an eye raiser but not neccessarily a slam dunk for Nintendo + VR. But the news of a VR mode being uncovered by hackers in the Switch's very OS ... is certainly something I think one has to take seriously.

I think the OP is right. Nintendo is working on something VR related.

My personal guess is they started experimenting with VR for the Universal Studios Super Nintendo World theme park attraction and became impressed with what was being produced. Now they want to do VR for maybe something like Metroid Prime 4, Luigi's Mansion 3, or even Mario Kart 9.

I also think the whole "one Switch model with just minor revisions for a full 5-6 years" is an insanely outdated policy of the 80s/90s. No major hit consumer election product (whether its an iPhone, Samsung Galaxy, iPad, PC, Playstation, or XBox) operates under that outdated product strategy anymore. Switch won't either if I had to bet. Mid-gen refreshes make a lot of money and PS4 Pro and XBox One X prove that they can co-exist just fine with the regular older models.

For games, Metroid Prime 4, Luigi's Mansion 3, and Mario Kart 9 jump out as games that would likely work well with VR.

Also the other interesting thing about this idea is a VR model would be a legitimate difference from the standard Switch, not just a cosmetic or even just a hardware boost. 

So I think that could work well. It also takes pressure off the VR model to have sell millions and millions, if the VR model could sell say 15-20% of the Switch's hardware total that would be a nice boost for Nintendo.