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There is more to a hardware jump besides higher resolutions and frame rates. Nintendo could opt to use the silicon budget on maximizing power efficiency, thereby ensuring the console operates silently at all times and has a longer battery life. Or is lighter weight. Or a combination of both. Nvidia DLSS can also greatly enhance performance with minimal input on the developer’s side.

I tend to agree with others that want Nintendo to get a move on sooner rather than later. The benefits of newer hardware seem direct and obvious, the benefits of waiting for the switch to be on year 9 before launching a successor seem really much less clear in comparison