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Graphics won't matter all that much anymore, and many developers will scale back on raw fidelity in favor of reduced dev costs/time and higher profitability. Switch 2 will be more than fine handling most AAA games, including a surprising number of PS6 games.

Engine tools currently aren't maturing enough to make pushing for the highest fidelity the best option for large scale games. Diminishing returns is another discouraging factor.

CPU heavy games could be a concern though, and may result in several late ports. Technologies like Nanite and path tracing will also be a problem for the Switch 2 if the PS6/2027 midrange PC's can handle them, and if games are designed around them. I just don't know how expensive these technologies are, for all I know they might reduce dev costs rather than increase them.