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720/60 for a handheld should be fine. The screen this size doesn't really need higher resolution. 1080/60 for docked would be preferable if possible. But in the end, such performance targets can even be reached with the current hardware as it is. The resolution and performance is always up to the devs to optimise the game to meet such requirements. More powerful hardware should make it easier, but I don't really think that with current tech it would be possible to go anywhere beyond this in Switch form factor.