I mean really if you want to break it down, it's pretty easy to "max out" a PS5 if you really push the resolution.
A 4K native game on PS5 at 60 fps, versus a port of that same game on Switch 2 at 720p docked native (DLSS up to 1440p or 4K) at 30 fps is a whopping *16 times* heavier pixel load for a PS5 to have to render per second.
Is a PS5 going to be 16x more powerful than a Switch 2? No chance, not even close. The gap between a PS4 and Switch 1 is maybe 4-5x.
So if you're say a Japanese studio that really can't afford to make a GTA6 budget game (which is all of them) ... it makes a lot more sense to be a little scalable in your game design and get a Switch 2 version that you can release, crank a PS5 to 4K/60 (but I doubt PS5 can even manage that for a lot of games) and you will max out that system. Then you can take that same game and make a 540p/720p Switch 2 version from it, use DLSS to upscale those resolutions up to something that looks a lot better (1080p undocked, 1440p-4K docked).
It doesn't have to be a case of "well if you make a shitty version for your Nintendo console, it's holding back a home console Playstation hard". That dynamic is also changing because 4K + 60 fps alone basically cripples a PS5 as is. 4K/60 just kills a PS5, it can't run a lot of the PS4 games at 4K/60, forget even a "PS4.5" kind of game like what Spider-Man 2 appears to be.
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