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Despite the "Fail" label, it's a better service than the $20/year PSN service that was there before. You just have to make peace with the fact that Nintendo isn't considering this the best gaming experience, just the best one they could make that could fit into the strict price point they were going for.
PATCHED Snes Super Nintendo (3000 Jogos) Ps2
All Nintendo games have their own unique home menu, if people want to play online they all use the same menu and are independent of online capability. Every first party game requires its own cart and the switch handles carts for all first party games but also USB memory for games people have downloaded on their devices. In this respect NSO is great, it does not cost anything, it takes up space on your console and it's easy to share cart slots as can be seen by the plethora of emulators for it. If you look hard enough you can get the emulators to support some things like SD card access with most emulators but not all of them and not all of them are hackable.
As for Wii U, it's a platform built on literally multiple generations of technology. The launch model of the Wii U was revolutionary when it was released and the platform has evolved greatly since. With respect to Nintendo's attention, their goal for Nintendo Switch was to provide a streamlined streaming and Nintendo is telling their 3rd party partners that they are the streaming source for 3rd party games. In a sense NSO is similar to how video tape was for the PS2 and Xbox, it was the easiest medium to use and it's most effective aspect is high-bandwidth to low-bandwidth, which the GameCube was for. Nintendo was concerned with publishing 3rd party and they're delivering on that by taking the cost out of their new consoles by providing the streaming technology, if a deal is made by the 3rd party and Nintendo for the 3rd party to port their games to the Switch it will be an "Easter egg" of sorts, if the 3rd party is really interested they will reach out to Nintendo with proper negotiating.
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