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Well if they have to develop something for Switch AND PS4 in the future, better run their games on UE4 or if they can't afford it, Unity since it's free for all Switch (and Wii U for that matter) devs. UE4 would be probably better, but short of that Unity should be optimised enough,more so than their own in-house engine anyway.
I can understand that if they started developing their engine with the PS4 in mind for a game with such low fidelity graphics (I mean not super highly detailed) then very little optimisation would be required since the PS4, even in its vanilla version, was the more powerful until the PS4 Pro and the XBox One X came along. But on the Switch of course they would have to make massive compromises if their engine was already so badly optimised to begin with that it probably wouldn't be worth reconstructing it from scratch to run well on Switch. All I mean with Zelda is that it shows what the system is capable of when programmed by capable people, but it doesn't have to be "Nintendo".
For the record, Shin'en is also indie, and it took them just a few months to port over FAST RMX to the Switch and they had the game running massively better on there than on the Wii U, AT LAUNCH and WITH an in-house engine ported over from a less capable system, and they're a very small team too. It just shows that there are indie devs that are more capable than others.