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It's a pretty clever way for Nintendo to get potentially several million mini-servers worldwide without paying a dime because consumers will be covering the cost.

If they're smart it could work like this

Regular Console NX = a little better than the PS4

Regular Console NX + SCD Device = on par with PS4K

People who want the highest end graphics can pay a premium for it, that's fair. Nintendo gets free servers. Win win all around.