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Soundwave said:

I'd also maintain I think there are factors at play beyond just "whether or not a new hardware is needed!".

If Nintendo ordered new hardware to be developed they likely did so 3-4 years ago, and if that hardware is now ready, someone has to be paid (someone being most notably Nvidia).

You can't just hire someone to paint your house and when they finish say "well it turns out I could've waited a year or two for my house to be painted, so can I pay you two years from now?". It doesn't work that way in chip design either. So I think the successor hardware chip was always going to be ready for 2023/2024.

Would you do a large job for anyone and then accept not being paid once the job is finished? Why do people expect Nvidia to behave that way? 

Nintendo can eat a bunch of losses by paying for it and not getting any revenue back I guess but I doubt they want to do that.

There's not much logic in sitting on a finished chip that you have to pay for, not making any money off of it, and then on top of that having a declining existing hardware that's bringing in lower and lower hardware sales and profit on a yearly basis to go with that. 

Yep, and the chipset that the new Switch seems to be using, the Orin based Tegra T239, was first rumored in 2021 and back in September 2022, the Nvidia employee confirmed it was a real chipset he was working on. I think it's safe to say this chipset will be done soon, and I agree that it doesn't make much sense to sit on a finished chipset design for a year or more just to push Switch 2 to 2025, especially since Switch 1 sales are clearly on the decline now.