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They are not natively compatible. Otherwise every switch game will run just fine on the new one, right?
https://www.nintendolife.com/news/2025/04/the-switch-2-will-emulate-switch-games-because-it-shares-no-internal-hardware-with-its-predecessor
Yeah, bad wording on my side. I meant they do not need upgrade packs.
I guess they created some internal translation layer (comparable to the Wine project?) to run the games.