1: Don't underestimate Nvidia. Nvidia made Sony pay a premium for that powerful PS3. Sony hated the price, so they made the PS4 far less technologically sophisticated for the time with their AMD partnership.
Nvidia was angered they couldn't land the Xbox One or PS4. So angered they made the Nvidia Shield to expand into the console market a bit (with moderate success). But Nvidia hates moderate success, or moderately strong. They want it all.
That's why if you look at the most powerful graphics cards... they're all Nvidia cards. Nvidia in the last 5 years has slowly left AMD in the dust at the high end (and even in regards to market share), but in the last 3 years has done so especially effectively at the high end. They don't want to be just the bargain or the entry level brand, but the everything brand.
And nothing says "everything" like the cutting edge. And the next Tegra chip... is going to be stronger than whatever weak sauce GPU is in the PS4, Xbox One and even the PS4 Pro (aka a GPU weaker than 2010's GTX 580; let that
heatsink in).
Nvidia is upset at Sony and Microsoft. They want Vengeance.
Blow up your entire solar system vengeance. Nvidia isn't hyping this Tegra chip in the Nintendo Switch up to be the Maxwell Tegra we all know. No, they're hyping it up to be the Pascal Tegra. And if we have learned anything from the Pascal GTX 10/1000 series line, it is "holy crap this beat my expectations" (unless you are an enthusiast for graphics cards with insane expectations, like 4k everything). Nvidia is all about that right now.
And despite being a mobile chip, the Tegra 2 GPU is on pace to be at worst around where the PS4 Pro GPU will be at. If that is indeed what we get, the GPU performance will be on par with the PS4 Pro (although the current generations' performance issue isn't GPU or RAM [well sort of RAM], but CPU).
2: That's just the graphics card. Nintendo is going to have a CPU too, definitely from Intel. Now, while Nvidia vs. AMD in GPU's may have been a recent blowout in regards to variety and high end, Intel vs. AMD in CPU's is wayyyy more extreme. While Nintendo won't get a high end CPU (i7-4790k, i7-6700k, i5-6600k), it will likely get something worthy of an entry level PC build.
Now while that may sound disappointing, that's actually great in comparison to the PS4, PS4 Pro, and Xbox One. All those consoles essentially have 2 generations outdated $20 CPU's. Literally bargain bin level. The PS4 and Xbox One have 4-core, 1.75 and 1.70GHz CPU's respectively that are 2 generations old. That's pathetic by any modern standard. The cheapest Best Buy laptops have better CPU's then that. The laptop I got in 2009 had a better CPU than that.
Something like
an Intel i3-6100 would be expected of the CPU if it is Intel (maybe a tad weaker, but I doubt any stronger). If it is custom made, expect it to be about there. Nintendo has historically been very good with CPU's and understanding them (as well as optimizing energy performance).
3: Remember the key difference between handheld and stationary devices. The reason a desktop performs better at gaming than a laptop is a variety of reasons. For one, a better power supply (since a desktop must ALWAYS be plugged, thus it is focused on performance). Secondly, better cooling (more space for fans, thus cooler temperatures. GPU's tend to max out around 90 C). So while the Nintendo Switch will likely keep the CPU, GPU and RAM intact while moved, it may lose fans (that are in the base) and whatnot.
This is the biggest reason for power drop offs, lowered resolution on the portable element (likely 720p vs. 1080p in the home variant), and less frames (along with frame drops when switching, which is inevitable). Now Nvidia has experience thanks to the Shield here on the mobile part. For the home system, both Nvidia and Nintendo have fantastic records with keeping their consoles cool (also in having low amounts of faulty systems/parts).
The Xbox One and PS4 have some issues in that department, although not as bad as their faulty predecessors. Given Nintendo being ahead of the curve there, that's another positive.
4: Don't underestimate Nvidia's partners. Capcom, Konami, Square Enix, Epic Games, Activision Blizzard, Bethesda, Ubisoft, 2K (and by extension Firaxis and Rockstar), etc. etc. etc. The only major studio I can think of partnered with AMD is EA.
Nvidia has cornered the partners market in PC gaming. Nvidia is going to bring that into the Nintendo Switch. Combine that with Nintendo's loyal 3rd party partners in Ubisoft, Capcom and Square Enix, and that covers pretty much the entire 3rd party video game industry. Because of Nvidia driver updates likely happening on the Nintendo Switch and Nvidia graphics cards simultaneously, expect video games on PC to come to the Nintendo Switch easily. Overwatch, Tekken 7, Quake Champions, Doom 4, Fallout 4, Dishonored 2, Dark Souls III... are all in play.
5: Don't underestimate Tegra support. Both the Unity and Unreal Engine 4 support Tegra. You know what runs on Unity? All kinds of mobile and card games, including Hearthstone.
You know what runs on Unreal Engine 4? Dragon Quest XI, the FF VII Remake, Kingdom Hearts III, Gears of War 4, Paragon, Shenmue III, Street Fighter V, Tekken 7. Heck, tons of game run on the Unreal Engine 3. With the Unreal Engine team at Epic Games working hand and hand with Nvidia and thus Nintendo, ports will be easier than with other systems. All of these listed games (well probably sans SF V, Shenmue III and Gears 4) could come to a Nintendo console.
6: A new console demands a new price point. At lowest, this console will debut at $400 (which is pretty cheap; maybe $50 more than the Wii when it launched at $500 about 10 years ago when adjusted for inflation in US Dollars).
Nintendo could debut this system for as high as $600. This isn't a console made to be a cheap one-off (like the PS4 and Xbox One are becoming) aka a "console being a bad PC." No, this is a console becoming a great hybrid. And it won't have a competitor. It will be able to maintain the 720p/30fps (maybe 480p/60fps as well) mobile and 1080p/60fps home mark very consistently for half a decade. Because it is a solid investment and will last at that mark almost definitively, this is a fantastic thing.
Yes, people short on money may be mad. But hey, is it worse than hearing the PS4 is outdated instantly after dropping $400? No. At worst, you can wait until it drops to $400 or $300 or $200 and you'll still have a few great years out of it.
7: Cartridges are your best friend. They can fit any game on them, are cheap to make, and can store DLC. Oh, and best of all, they load A LOTTTTTT faster than discs or HDD memory. It's near SSD speed for consoles. The only way it could be better is if the system came with an SSD or had the option of adding one (I would love putting a 1GB SSD in a system!).
Faster loading times are always a positive. Combine that with Nvidia graphical power and likely a much better CPU than the PS4, PS4 Pro, Wii U or Xbox One, and that's a ton of appeal. That's always a positive. I think video game enthusiasts worldwide have come to dislike loading screens, and this is one FANTASTIC solution to it. And unlike with the N64, cartridges now nearly as cheap as discs, and can fit roughly as much memory! That's fantastic times, and this was the perfect time for cartridges! It's the best of both worlds!
8: The Appeal of Nintendo handheld systems. Nintendo has NAILED every handheld system (the Virtua Boy notwithstanding). Each system has made billions of profits and had a userbase of tens of millions, with over a dozen true classic titles that stand the tests of time. Combine that with the power of the home console and the Nintendo home console exclusives plus all the big 3rd party titles on consoles and PC, and expect huge growth.
Just imagine this: You can get the tradition big 3D Mario platformer, the cool 2D Mario platformers, the 2D small Zeldas, the vast 3D Zeldas, everything Phoenix Wright, big 3D first person Metroid, Donkey Kong Country, Xenoblades RPG action, Stunning Smash Wii U action and details, Bayonetta 2 hack and slash awesomeness, Splatoon rapid fire third person shooting...
...all on the go and at home. You are literally combining the best of both worlds and can mix and match.
As a kid, didn't you ever wish you could play Pokémon Red and Blue but with greater detail on the N64? You're gonna get a modernized version of that. Or what about the idea of playing Zelda: Ocarina of Time, Mario 64, or Smash 64 on the go? You're gonna get a modernized version of that.
Heck, you'll be able to do both with the Virtual Console alone! This is the perfect marriage of both of these things. Both the dreams are real. This is the best of both worlds.
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TL;DR: Overall this is the success of Nintendo handhelds meets the power of Nvidia meets Nintendo's efficient home consoles and the ability to customize how you play all-in-one.
How is this anything but the next major console revolution in video games and likely a gigantic box office hit? This could be bigger than the Wii and even the DS.
Sony and Microsoft can pretend to get 4k gaming down (my GTX 1070 sort of has 1440p down at max settings/60fps; these consoles won't hit 4k solidly until like 2028 lmao. The Pascal Titan X barely does 4k/max settings/60fps universally). Nintendo is going to nail 1080p@60fps home console gaming/720p@30 or 60fps mobile gaming for years to come with the Nintendo Switch.
This is the iPhone or iPad that doesn't need updating. The console that doesn't need a Pro version because it is outdated in 2 years and can't handle 1080p. This is the future.
Nintendo didn't find their niche in the home market, so they decided to destroy the old ones by combining everything. This is the power smartphone users wish their portable devices had. This is the portability console and desktop gamers wished they had. This is the best of both portable and home consoles, and this is what we all in the back of our heads wished we had when the Game Boy first came out. I don't think most of us have realized it yet.
Edit: I also didn't mention experts are saying developers and producers for PS4 Pro titles are now moving over to the Nintendo Switch because of Nvidia + the Switch likely being a stronger system. That's a very positive sign, since the Pro isn't that much stronger than the standard lackluster PS4.