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Otter said:
Ray Traying would be a complete waste of resources on the Switch 2

The main things to focus on is keeping up with CPU,RAM & Memory Speed requirements, GPU can more easily be scaled with resolution ( DLSS). 4K capability is no brainer, what resolution devs actually target will depend entirely on their focus. PS5/XSX ports can scale up from 540p if necessary, 1st party Nintendo games or Switch 2 exclusives will largely aim for higher.

Also think Nintendo can afford to aim for a $399 price with Switch 2. I think they've proved the concept works, now its time to put a bit more money into the hardware so it can more comfortably be a jack of all trades.

If PS5/XBSX are $599.99 especially to start with, I think $399.99 even would be fair especially if Switch 2 can run a good number of PS5 games. Even at only 576p resolution, that will scale up to 1440p very nicely for TV play and undocked can go even lower. Control on PC using DLSS 2.0 still looks very playable on a small portable screen at even 512x288 resolution. 

$349.99 is a given at least I think, the Wii U launched at this price already in 2012, so its the pricing they were looking at for their consoles even 8 years ago. They had to back off that price point only because the system flopped.

They also now I think have confidence that they can always release a cheaper "Lite" model down the road for people who want, so the base Switch doesn't have to be all things for every consumer, they know now the can bring out a Lite model later to cater to budget conscious consumers.