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It depends on the game really.

The big AAA blockbusters that shoot for maximum graphical fidelity will still be made for PS/Xbox, (and sometimes downported to Switch 2) but a lot of indie and AA games, particularly from Japanese devs, will probably be built with Switch 2 in mind.

It's baseline should be high enough that it doesn't overly restrict the kind of games made by smaller devs, while many of them won't have the resources necessary to build graphics beyond Switch 2's capabilities.