All five people who plan to use their hacked Switch for homebrew are pleased. The thousands more waiting for pirated games continue to wait.

It is a hardware exploit in the Tegra X1's boot rom. However, Nintendo and Nvidia do not need to release a Switch 2 to fix it. They will just need to release a small revision that patches the issue on the boot rom in future systems (though current models that have already been sold and most likely the systems that will be sold in the first half of the year will likely have the exploit). Of course, part of this will depend on whether or not Nvidia would be willing to make a modified Tegra X1 that would fix this issue. The Wii had a similar boot rom related exploit and Nintendo patched it in newer models.

The second question is how easy the hack will be to exploit. If the boot rom can be exploited right before the OS boots through the SD Card or by using an app on PC (like how people unlock bootloaders for Android devices; this would be the absolute worst case scenario for Nintendo, since this method is really easy for users to do) then Nintendo would ideally want to release a hardware revision right away or they will risk mass piracy. On the other hand, if the boot rom can only be exploited through a chain exploit from the Switch's OS, then they have more time since they can patch entry points by updating the firmware (this is essentially how they dealt with 3DS's unpatchable boot rom exploit; though Switch is a much more open system, which might make this approach more difficult).

The Switch has two broad things that are going against its security. Firstly, they are using an off the shelf component (Tegra X1) that has readily available public documentation (in some of which, Nvidia themselves ironically detail backdoors) and publicly available development boards (Tegra Jetson) and other consumer electronics based around it (Shield TV, Pixel C, etc). This gives developers a huge knowledge base to work on. The second issue is that Switch uses a newer version of the 3DS's operating system, which hackers are intimately familiar with at this point.

While I am all for homebrew. I do hope Nintendo does manage thwart piracy (though based on how much more open the Switch is compared to their past systems, it is going to be difficult for them), especially so early in the system's life when it needs to secure software support. We certainly don't need a PSP where the software output peaked in its second year, as developers got spooked due to how easy it was to hack the system.

I don't care for homebrew. I pay for the games I want to play and support Nintendo, Puplishers and Developers.

I was a pirate when I was kid. Got no money. The moment I got a job, I stopped that shit. People who have a job and are still pirating their games are scumbags.

Thieves everywhere rejoiced

Has a console ever been cracked so fast?

This will boost hardware sales but decrease software revenue for Nintendo.

Yes, The PSP did. 

Here is a nice trip down memory lane: http://wololo.net/2014/01/18/10-days-of-hacking-day-4-the-psp-part-1/

It ll still be along time before anything happends in that department imo.
Nintendo shouldnt worry about it.

by 2021, they should have a Switch 2.0 out that ll be able to not look ancient next to the PS5/XB2, and get some Ports from Multiplats.

Ya, it takes awhile. PS4 which has had Homebrew for awhile just got ps2 games working in the last four months or so.

4.05 f/w features full blown piracy, in fact.

You can play Ps2 via emulation on the PS4?
hmmmm... I guess I shouldnt be surprised, most PCs and hell even phones really can probably do it nowadays.