From what people have gathered, the CPU calls from Switch 1 games are converted to Switch 2 calls, and the GPU calls are emulated. Shaders are probably de- and recompiled for the new GPU.

What people forget is that GPUs are generally not binary compatible between generations, even from the same brand. That’s why PCs usually take time compiling shaders. On consoles, the games distribute the compiled shaders for the console, which means it won’t work on other GPUs without emulation.

I’m not an expert on game development, so please correct me if I misunderstood something.

Currently catching up on Fire Emblem Engage! Loved Three Houses a lot, but from the media reception I already knew Engage wouldn’t be as good as 3H. And indeed, the story is mediocre compared to it. However, I still like the FE gameplay anyways, so it’s just been fun!