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I think most people are satisfied with the handheld performance of the Switch right? Nintendo's focus there should simply be making the SKU cheaper and longer battery life/power efficiency.

I don't think they should over complicate the SKU's but instead release a supplmentary GPU dock which allows Switch games to reach 4k when docked. Should be relatively cheap ($199) and easy to market. Given the weak strength of the Switch when docked, they could quite comfortably reach the 4k benchmark without spending big bucks on hardware.