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The thing is, cell phone VR needs a 1440p screen to look good. Otherwise, the screen door effect is crazy. The premium PC headsets have this problem as well. There is simply no way that a 720p screen will do the job well.

With that said, I think it's a near certainty that Nintendo will release an upgraded Switch if there original sells well. They need to make it more portable, and higher resolution for both VR, and general portable gaming use.