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Xcloud for Switch would have no benefits for Nintendo. It would make them barely any income, they aren't about to get a cut of Microsoft's software revenue, and would only take away third party support and sales, why in the world would they want that. Plus Nintendo's sell for Switch is still portability, tying that to cellular isn't going to work out well right now. This is very very likely the beginning of deal making and investments into R&D for a much more long term streaming option for Nintendo.