Another new Nintendo patent published yesterday seems to verify claims that Switch 2 will use DLSS style AI upscaling (Nvidia chip) to improve output resolution for games, rather than trying to natively run them at higher internal resolutions.
Perhaps the most interesting piece of this is that one example use case given is explicitly to reduce overall game sizes, to fit a modern game onto "smaller capacity physical media", e.g. Switch carts, which get exponentially more expensive for larger cart capacities.
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