$400 will be a tough sell against the optical-drive-less PS5, or the XBSS. Especially if the Switch 2 only manages to match the power of 8th-gen systems. Switch 1 was more powerful than the 7th-gen systems, so one would hope that Switch 2 will be more powerful than the 8th-gen systems, but who knows if things will actually turn out that way. It will also be a tough sell compared to a similarly priced Steam Deck.
I can only hope that emulation for Switch 2 takes off the same way it did for Switch 1. Nintendo can try to throw its weight around like a bully, but you can't stop the community.
